PROPERTYOF ISER FILECOPY Do Not Remove A AS A REVIEW OF BUSINESS AND ECONOMIC

CONDITIONS r

UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH APRIL 1967

The KodiakEconomic Community Th e effect of th e aft er-quak e boom is now wearing off but the promise of a stabl e economic bas e is brighter Kodiak, Alaska's oldest city, was found ed on its pr esent than ever. The Alaskan king crab industry has grown sit e in 1792 by th e Russian adventurer Alexand er Baranof. faster than any oth er segme nt of the United States fishing Th e wealth that lured the Russians to the island group industry- and th e majorit y of king crab are caught in th e of the Kodi ak archip elago was fur , especially that of the Kodi ak Island area. Kodi ak's new $1.5 million small boat fabulous sea ott er. Th e islands , stretching for 200 miles harbor is already too small for th e numb er of vessels in th e western Gulf of Alaska, attract ed trapp ers and seeking berths. Tod ay th ere are 30 fish proc essing plants trad ers and were th e scene of blood y conflicts with the on Kodiak, 15 in the city itself, with several mor e firms nativ e Aleuts. negotiatin g for plant sites. A growing tourist indushy Throu gh almost two centuries Kodi ak's fortun es rose and newly announc ed plans for a year-around timb er in­ and fell like th e tid es th at swept its shor es; first Russian dustry on near~by Afognak Island insur e that Kodiak will capital of Alaska; whalin g port; salmon cann ery cent er; nev er again be a "sleepy littl e fishin g villag e." naval station. Kodi ak's citizens mad e their livelihood from Economic History of the Islands t.he resourc es of th e sea, and although in 1964 it was a mod ern community, it was more often referr ed to by Th e economy of th e islands has always been based outsid ers as a "sleepy littl e fishing town." primarily on th e resourc es of the sea, thou gh ther e have always been some minor enterprises as vari ed and indi­ In March of 1964 the tempo of life on Kodiak changed vidualistic as the residents of the area. for ever. A massive earthquak e struck southwestern Alaska As early as 1805, when the Russians moved th eir capital and sei~mic waves generated by the uph eaval wiped out to Sitka, Kodiak residents rais ed cattl e and sheep for local 75 percent of downtown Kodiak. Th e fishin g fle et that consumption , built boats and cut fu elwood and lumber provid ed th e economic base for th e town lay in min . for shipment to th e tre eless islands to th e west. From ·1650 Dama ge to the city exceeded $24 million. It was th e end to 1870 th e islands were a port of call for whaling ships. of th e "sleepy littl e fishin g town " but it wasn't th e end In th e same period, an unusual and profitabl e industry of of Kodiak. exporting ice was und ertaken by the Russian-American Ironicall y, th e Alaskan earthquak e br eath ed new life Ice Company. Ice was exported from Woody Island, near into Kodiak. Residents began plannin g for a n ew and Kodiak, and shipped to ports as far south as Central bett er city. Today , thr ee years later , they have it. New America . buildings went up , new boats were built, plans were Th e economic futur e of the islands was forecast during mad e for new industri es. The reconstrnction boom has th e last half of the 19th and early pa1t of th e 20th centmy created probl ems. The city has a housin g shortage and wh en th e first cann eries were built. Th e first salmon can­ is in need of a new wat er and pow er supply. But th ese nery on Kodiak was built in 1882 on Karluk Spit on th e are the probl ems of pro gress, not of a stagnating com­ northwest side of Kodiak Island , and Karluk remain ed the munit y and the residents see th em as challenges that can cent er of the island's salmon industry to the 1920's. be met. E ven though by 1897 it was apparent that th e rnns were PAGE 2 UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH

trade and services in the city and provided a market for ALASKA REVIEW OF BUSINESS AND ECONOMIC CONDITIONS local products. The labor shortage drove incomes up all VOL. IV NO. 4 over the island. Published by the The amount of fish frozen in Alaska had been increas­ Institute of Social, Economic and Government Research, University of Alaska, College, Alaska ing steadily since 1935, and in 1940 the first cold storage William R. Wood-President, University of Alaska plant was built at Port Williams on the north shore of Victor Fischer-Director of the Institute of Social, Economic and Government Research Kodiak Island. A second plant was built in 1946 in the Victor Fischer~Editor Francis R. Eels-Associate Editor town of Kodiak, both plants freezing halibut to their Susan Schwartz-Author capacity, plus small amounts of salmon. Although after the war the mnnber ol operntmg salm011 being overfished, salmon fishing was the only industry of canneries fell and the herring and halibut fisheries went any importance on the islands through World War I. into decline, there was still full employment in the islands Fox farms were started on the islands, and before World during the fishing season. Kodiak's king crab industry War I there were 14 in operation. Although the price for began its belated growth in 1949 and 1950 and a razor the fur. was high so was the failure rate, and after 1920 clam cannery opened in Kodiak in 1955. fox farming was never of much economic importance. Salmon runs and catches in 1962, 1964 and 1966 (the Codfish, salmon salteries and herring curing plants even years of good pink runs) have shown a considerable were built on the islands during the early 1900's, but recovery as compared with the 1950's. This improvement only the herring curing industry prospered to any extent. coincides with the rising imp01tance of king crab and In 1927 and 1928 there were 17 curing plants, but the shrimp. (See Table 1.) market dropped sharply in 1929. The industry did not More cold storage facilities and the excellent transpor­ revive until 1934, when reduction plants utilizing herring tation available out of Kodiak have led to an increase in of all sizes were first opened on the islands. products frozen. Fish frozen in 1965, besides the major The salmon industry on Kodiak grew during the pros­ products halibut, shrimp, and crab, were: 165,552 pounds perous period of 1920-29. As demand for salmon increased of salmon (valued at $46,198); 137,626 pounds of cod; and the reel salmon nms were exhausted, processing of 30,000 pounds of reel snapper; 230,517 pounds of halibut less valuable varieties became more profitable. Still it heads and tails for crab bait worth $11,525; 12,639 pounds was not until 1925 that production of pink salmon, now of salmon heads and tails for halibut bait worth $6,193; the bulk of Kodiak's salmon pack, exceeded that of red 15,000 pounds of salmon eggs for bait w01th $11,655; and salmon. 197,672 pounds of cured herring roe valued at $119,617. There were several reasons why the industry did not This herring roe is a new product, prepared since 1964 then bring the growth in population and in other industries to be sold as gourmet food in the Japanese market. It has that today's fisheries have caused. Labor in the fisheries also led to a reopening of Kodiak's herring reduction in­ was probably more than 90 per cent non-resident. Two of dustry, although on a small scale. the three major fisheries, salmon and herring, operated for only two months during the summer, and the halibut TABLE 1 fishery had virtually no economic effect on the islands. PRODUCTION OF MAJOR KODIAK FISHERIES The period 1929 through 1934 was one of general de­ 1956-1966 pression in world fisheries, and in Kodiak. However, after 1934 the economic climate began to improve. The gov­ Salmon ernment applied political pressure to the canneries to Pack Herring Halibut King Crab Shrimp Dungeness (cases of Catch landed Catch Catch Crab Catch induce them to hire more residents; salmon prices rose 48 1-lb. (tons) (lbs.) (lbs.) (lbs.) (lbs.) and there were eight successive years of excellent salmon cans) runs. 1956 244,031 13,524 1,109,000 4,768,646 1957 344,035 21,819 1,548,549 5,008,177 World War II marked the turning point for the town 1958 332,158 1,711 1,438,067 5,224,397 31,886 of Kodiak. Up to that time, Kodiak was a village only 1959 197,021 3,831 1,755,867 10,244,403 2,861,900 1960 414,386. na 16,844,157 3,197,985 slightly larger than others on the islands. It had some 1961 294,775 na 28,875,194 11,083,633 daily and cattle farming, a few stores, but only one can­ 1962 732,489 3,709,695 35,308,837 12,654.027 na 1963 267,175 5,611,020 42,276,058 10,118,472 na neiy and little industry of any other kind. In 1939 con­ 1964 640,225 568 3,009,205 29,641,538 4,339,114 4,254,620 struction began on the Kodiak Naval Station, just west of 1965 203,339 657 4,382,114 76,586,430 13,810,170 3,311,570 1966* 596,306 na 3,455,117 90,616,615 24,097,141 1,416,174 the town, and throughout the war thousands of men * Preliminary figures were stationed there, with a peak of more than 20,000. SOURCE: Alaska State Department of Fish and Game; International Pacific The advent of the base increased the volume of retail Halibut Commission. UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH PAGE 3

Another new product for the Japanese market, utiliz­ ing what was formerly a waste product, is red caviar prepared from salmon roe. The industry began in 1964 and now nearly every salmon cannery in the area is pre­ BARRENP«>.., paring this caviar, under the direction of Japanese tech­ ISLANDS nicians. Total production in 1965 was 57,845 pounds, valued at $41,053.

Kodiak's Economic Base The will continue to be its natural resources: fisheries, and to a lesser extent timber, grazing, wildlife and scenery upon which a tourist industry can be based. Prospects for mining or petroleum development of any importance on Kodiak are uncertain. Fisheries-related research and edu­ cational activities will supplement and reinforce the economy. Kodiak owes its rich fishing resources to its position on the broad Continental Shelf, which extends from the Pacific side of the Alaska Peninsula farther into the ocean than from anywhere else in northwest North America, except off the Bering Sea coast. It has long been known that an abundance of fish and shellfish collect on these shallow banks, but even today a thorough knowledge of the resource is lacking. There are several reasons for the current growth of the Kodiak fishing industry: increasing demand for fish in the United States and in the Orient; P,xhaustion of older fish­ TUGIDAK ISLAND ing grounds closer to the main markets in the Pacific TRINITYISLANDS Northwest; dependable transportation and comparatively low freight rates available from Kodiak to the Pacific Northwest. These and related factors have established 0 z., So

Kodiak as a principal world fisheries center. Kodiak 0 CHIRIKOFISLAND Scale of Miles ranks as the nation's third most important fishery port with landings worth $13 million to the fishermen in 1966.

Salmon of the 1965 catch were canned in three of the canneries Salmon runs in the Kodiak area are slowly increasing then operating. to the 700,000 case pack that is the estimated level of The demand for canned salmon is growing very slowly, sustained yield. A catch of this size was common some and there is little prospect for significant changes. There 30 years ago, but, as Table 1 shows, has been approached has been some increase in the amount of salmon frozen in recent years only in 1962 and 1964. Although salmon and in the use of waste products-the freezing of heads, is no longer the most valuable of Kodiak's fishing in­ tails, and eggs for fish bait, and making of red caviar dustries, it employs more people and is more important from salmon eggs. These, however, amount to less than as a basic source of income to the residents of the islands two percent of the wholesale value of salmon taken from than the most valuable fishery, king crab. In 1966, 529 the area. Except for caviar, this production is concentrated vessels and 1,619 fishermen were licensed to take salmon in Kodiak and will probably continue to be, as they are in the Kodiak area. Most of the fishermen are residents sideline products of cold storage plants, most of which of the area and the number of licensed fishermen and are located in the city. vessels is growing rapidly. The number of salmon canneries operating on Kodiak King Crab has been reduced by consolidation, and most of the fish King crab, an almost exclusively Alaskan fishery, has are canned in a few large canneries. About three-quarters been in recent years the most rapidly growing fishery in PAGE 4 UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH

the United States. Most of the Alaskan king crab comes bottomfish resources much closer to the main markets from Kodiak-57 percent in 1966. The 1965 catch of and with lower processing costs are being neglected, and 76,586,430 lbs. increased in 1966 to an estimated 90 616 - these would probably be exploited before the fishery 615 lbs. However, the catch of king crab per unit of ~ffo~ moved into Alaska. in the Kodiak Island area has been declining since late 1966 and there is some basis for the belief that the sus­ Shrimp tained yield of some stocks could have been reached or Shrimp is a new industry in the Kodiak area, and passed during 1966. A computer program is being devel­ catches have not yet reached anywhere near sustained oped to analyze all tagging and recovery data collected yield. Presently about 95 percent of the shrimp catch is since Hl61. This data may define the geographical ranges off of Sitblidak of various stocks of king crab being taken in the area. Island. The fishery is virtually year-around, with a low in In 1966, 912 fishermen were licensed to fish for king January. The vessels used are quite large, mostly in the crab in the Kodiak area-596 of them Alaskan residents. 70 to 80 foot class. In 1966 there were 10 vessels and 48 There were 228 licensed crab vessels in the area, 180 of fishermen licensed to take shrimp in the Kodiak area; of which were Alaskan owned. The average size of king crab these 7 vessels and 34 fishermen were non-residents of fishing boats has been increasing rapidly, and since the Alaska. Most processing is clone in the city of Kodiak. restriction on number of pots per vessel was removed in However, recently a shrimp freezing operation under 1964, the number of pots per vessel has also grown. As Korean direction began at Port Williams, on the north this larger, safer, and more efficient gear comes into use, shore of the island. fishing moves farther and farther off shore. Kodiak's catch in 1965 of 13,810,170 pounds of shrimp Most of the king crab is caught off the south end of was the lion's share not only of Alaska's but of the Pacific Kodiak Island, around Alitak. About 75 per cent of the Northwest's shrimp catch. The 1966 catch increased to catch is processed in the city of Kodiak. With the still 24,097,141 pounds and area fishermen are showing an rapidly growing market for the crab in fresh, canned or increased interest in this phase of the indushy. However, frozen form, there is little prospect that the fishery or its it faces strong competition from shrimp fishing in other value will decline sharply. areas, particularly in the Gulf of :tvlexico. Dungeness Crab Bottomfish The clungeness crab industry has grown up in Kodiak The bottomfish resources off Kodiak Island are among in recent years, during which there has been a shortage the richest in the world. However, the only bottomfish in the Pacific states. Catches are not yet near sustained landed in significant quantities at Kodiak is halibut-with yield. Fishing is clone almost entirely in May through occasional landings of sablefish, cod and red snapper. September, with the peak in July and August. Most of the Halibut have been taken in large numbers from the vessels and fishermen are residents of the Kodiak Islands area since 1916; the catch is carefully regulated by an -the fishery provides an alternative use for their salmon international commission, and is not increasing. However, fishing boats that are too small to use in fishing for king thanks to the expansion of cold storage facilities, the crab. The clungeness crab are processed almost entirely generally high prices paid for the fish since 1962, and in the city of Kodiak. With a growing demand for since 1964 the weekly steamship service available from crabmeat the prospects are that even if crab again become Kodiak to Seattle, landings at the port of Kodiak are plentiful in California, Washington and Oregon, Kodiak's growing. Halibut is now Kodiak's third most valuable clungeness fishery will continue and probably grow. fishery. Most of the catch is taken by large Canadian and Amer­ Herring ican fishing vessels, but Kodiak's resident fishing fleet is The old herring reduction industry was a fall fishery, growing, and in 1966 numbered 14 vessels. Fish are using summer-fattened herring in the production of meal brought from all around the islands, from the Aleutians and oil, and employing almost exclusively non-resident and even the Bering Sea; processing is done almost entire­ fishermen. The present operations, begun in 1964, are ly in the city of Kodiak. based on herring caught in the spring before they spawn, The chances that other bottomfish will become impor­ when they are thin and oil-less. The main product is tant to the Kodiak economy are not as favorable. Alaskan herring roe for the Japanese market. Herring is also frozen bottomfish face unfamiliarity, as well as stiff competition for bait. Some meal is produced, but no oil. In 1966 only from similar Atlantic varieties with an established market two vessels and 19 fishermen were licensed, one vessel and from low cost imported fish. At present West Coast and 9 fishermen holding resident licenses. UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH PAGE 5

Clams also available under the act for scientific and technolog­ Kodiak, before the 1964 earthquake, had a fully exploit­ ical research for the development of marine resources and ed resource of razor clams and a virtually untouched sup­ for the development of advisory programs. The act is ply of butter clams. Both of these were temporarily elim­ clearly important to Alaska and it seems likely that the inated by the subsidence of beaches after the earthquake. state will eventually benefit. There have already been It is still too soon to say what the fate of the industry will proposals that Kodiak, by reason of its location, should be when new generations of clams reach commercial size. be selected as the site of any establishment for marine New enterprises are likely to make use of mechan­ training or research which may be set up with funds ical clam diggers, which have greatly lowered costs of 1mcler thP new aC't. clams dug on the Atlautic coast. The Kodiak City Council has proposed that the Uni­ Fisheries Research and Training versity of Alaska establish a community college in Kodiak and recently met with the provost of the university's In recent vears Kodiak residents have expressed inter­ est in establi;hing both a community college and facilities Anchorage Regional Center to find out what steps are for marine studies and research in the city. A resolution necessary before a college could be established there. was introduced in the State Legislature in February of The university is presently conducting classes in Kodiak this year, requesting the University of Alaska to establish and has done so for the past eight years. a marine science college and oceanographic research center in Kodiak as part of the Institute of Marine Sci­ Forest Resources ences headquartered on the main campus at_ College. Kodiak has a rich resource of timber which has not yet However, similar resolutions were introduced on behalf been exploited, but a prospect of big developments was of Seward and Juneau (the latter already has a division opened up in June of this year in an announcement by of the university's Institute of ~1Iarine Science, at Doug­ Governor Walter Hickel of plans for a mill on Afognak las) and Kodiak faces strong competition. Island. Afognak, the smaller islands around it, and the An opportunity for the eventual establishment of some northeast tip of Kodiak Island, have valuable stands of type of fisheries training facility at Kodiak was increased pure Sitka spruce. The trees are not of as high quality as in 1966 when Congress passed the Sea Grant Colleges those in Southeast Alaska, but the stands are very heavily and Programs Act. This act provides funds for training stocked, and suitable for commercial exploitation. Most at all levels of personnel who are in the fishing industry are accessible. or who intend to make a career in fisheries. Funds are In all, the commercial forest land on the archipelago TABLE 2 amounts to over 270,000 acres. In the past this timber has supported only one or two small sawmills, which CATCH AND VALUE OF MAJOR KODIAK FISHERIES operated intermittently supplying undried, low quality 1965 and 1966 lumber for the local market. The establishment of a new

Percent Value to Wholesale mill would change the picture entirely. The present landings of Total Fishermen Value of All position is that representatives of major Alaskan timber Product (lbs.) Alaska ($) Products landings ($) operations have applied for incorporation of the Afognak

King Crab ...... 1965 76,586,430 58.2 7,658,643 18,416,354 Timber Company, with a view to opening a mill in 1968 1966 90,616,615 57.0 9,242,895 no scheduled to produce 40 million board feet of timber per Salmon ...... 1965 16,562,000 6.0 1,744,484 6,003,722 1966 12,218,293 19.0 1,503,498 no year. This would provide employment for upwards of Halibut ...... 1965 4,382,114 15.4 1,148,114 2,156,267 40 persons, and a company town on Afognak is envisioned, 1966 3,455,117 11.9 1,077,997 no Dungeneu Crab,.,,,. 1965 3,311,570 37.2 397,388 972,418 with a deep water port and dock facilities. Wrangell Lum­ 1966 1,416,174 28.0 167,109 no ber Co., representing Japanese interests, has contracted Shrimp ...... 1965 13,810,170 82.1 ~21,458 1,544,045 1966 24,097,141 85.5 963,886 no to purchase a minimum of four million board feet per month for an initial 10 year period, with an option for TOTAL ...... 1965 114,652,284 11,570,087 29,092,806 another 10 years. The new company is stated to be nego­ TOTAL ...... 1966 1 31,803,340 12,955,385 tiating with the U.S. Forest Service and the State Depart­ NOTE: The figures for 1966 ore preliminary. ment of Natural Resources for timber to be taken from SOURCE: Alaska State Department of Fish and Game; International Pacific Halibut Commission. both Afognak and Shuyak Islands. PAGE 6 UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH

Grazing boat owners employed by the guides or hunters. The grazing industry on Kodiak began with the intro­ Given that the average hunt is about a week long, duction of Siberian cattle and sheep by the Russians. costing three men about $100 per day apiece, the Kodiak Until recently one or two small dairy and cattle enter­ bear supports an industry which grosses about $180,000 prises supplied Kodiak's local market. As in other areas per year (exclusive of the cost of transportation to and of Alaska, however, as transportation improved dairying from Kodiak, and of money spent by the hunters during had difficulty competing with products brought from out­ the one or two clays which they spend in Kodiak on their side. The last dairy enterprise on Kodiak discontinued way in and out.) operation in 1963. :tviost of the game animals and rnanv of the for-lwarers 011 the islands were introduced. They include elk, deer, Wildlife beaver, muskrat, goats, clall sheep, ptarmigan and grouse. ·wildlife has been only a minor contributor to Kodiak's These diversified game resources, and fresh and saltwater economy since the near extinction of the sea-otter popu­ sportfishing whose potential is almost untouched, may lation before the turn of the century. Animals are plenti­ someday be the basis of a tourist industry on the large ful, but the poor market for furs and the availability of areas of the archipelago that seem to have almost no other sources of winter income (particularly king crab) other economic potential. have reduced the number of trappers. Much of the trap­ ping today is recreational. Beaver, which was introduced Population and Settlement to the island and has only been taken legally since 1950, The present population of the islands is about 11,500. has been added to fox, ermine, and land otter as a source Kodiak, on northeast Kodiak Island, is a first-class city of income from trapping. Kodiak beaver skins are w01ih of about 7,500 people. The population is growing rapidly considerably less than those from most other areas of as Alaska natives and whites from all parts of the United Alaska, and far fewer are taken than the stock would States move to the city, attracted by the boom in construc­ allow. tion and fisheries employment. At the Kodiak Naval Sta­ Both hair seals and sea lions are common in the Kodiak tion, west of the city, the U.S. Navy and the U.S. Coast archipelago. From 1963 to 1965 European demand and the Guard have a relatively constant population of about price for sea lion pup and hair seal hides increased rap­ 2,500, including dependents. Some 800 people are scat­ idly. Hunting pressure on the animals followed. A peak tered around the islands' coasts, in very small villages was reached in 1965, when 3,029 sea lion pups and about or near canneries. In the outlying areas population 10,000 hair seals were taken in the Kodiak and Barren is increasing slowly: the birth rate is high, but many peo­ Islands; the total value of the hides to hunters was about ple, particularly young women, are moving out of the $185,000. Some thirty to forty men, many of them resi­ villages into larger communities. (See Table 3.) dents of the archipelago, engaged in the hunts, which took place mainly in early summer. The numbers taken in The City of Kodiak 1966 were some 3000 sea lion pups and about 7000 seal; The city of Kodiak is the processing and distribution the annual take is expected to level off at below 196,5 center for fish taken from grounds all around the island levels. The sea-otter population has recovered under group. Roughly half the islands' fish processing plants, protection, and there is a possibility that these valuable 75 percent of the summer employment and 90 percent furs will be taken commercially in the next few years. of winter employment in fish processing are within the The most valuable wildlife resource on the archipelago city. A large proportion of the fishing fleet is berthed today is the Kodiak Bear-the world's largest carnivore. permanently at the Kodiak small boat harbor. The animals are an attraction to tourists and to trophy Important economic activities besides fishing and fish hunters from all over the world. From 1961 to 1964 the processing are government, trade, transportation, com­ kill of bear was fairly constant, between 118 and 131 per munications and, currently, construction. From the late year, but in 1965 and 1966 the kill increased abruptly to 1950's to 1964 there was very little construction activity about 180 per year. Future kill will probably be limited in Kodiak, but earthquake reconstruction and the boom­ by shortening the season, and may be expected to level ing fishing industry have brought unprecedented grmvth off at about 150 per year. to the islands and particularly the city of Kodiak. Kodiak bear hunting provides total or partial income Retail sales in the Kodiak area increased 22 percent for twenty licensed guides living on the archipelago, for from 1963 to 196,5, and continue to grow rapidly. Yet a few guides who bring hunters to Kodiak from other there has been no great increase in the number of retail parts of Alaska, and for taxidermists, packers, pilots and establishments in the area. Rather, already existing estab- UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH PAGE 7

lishments (almost all of which were located within Kodi­ Kodiak faces a critical shortage of water for both in­ ak's 32.9 acre urban renewal project) are rebuilding on a dustrial and residential use-a result of the immense scale that makes them almost unrecognizable. amounts of water used by the many new fish processing School construction, electrical connections and, in re­ plants. The per capita consumption of water in Kodiak cent months, telephone connections, have caught up with is possibly the highest in the world-the city uses more demand. But other public facilities have not kept up with water than all of Anchorage. The shortage is so acute increasing demand: the hospital is over-crowded; the that in 1965 processing plants in the city were forced to city's airstrip needs expansion or relocation; there is a shut clown for ten clays, losing thousands of dollars, and waiting list of over 100 boats wanting permanent berthing the absence of water is probably a factor preventing m the small boat harbor; and a 11ew mari11e repair 1acility is needed as the present one is not adequate to serve the 1.8 million dollar bond issue for the construction of a large fishing boats used increasingly for king crab fishing. new reservoir, at :tvlonoshka Creek; and is now awaiting a matching grant from the Economic Development Admin­ The city's most serious problems, however, are the istration before construction begins. shortages of housing and of water and sewer facilities. Several hundred acres of good building land on Near Another impediment to Kodiak's growth is the high Island would become accessible if a bridge were built cost of power. The city's electricity is now generated to it, 200 yards across Kodiak harbor. ·within the city by diesel, in the recently combined systems of the Kodiak itself there are about 500 undeveloped lots zoned for Electric Association and the Kodiak Naval Station. The · residential use, about 200 of them already equipped with most likely hydroelectric development seems to be at streets, sewers and water. The causes of the housing Terror Lake, 20 miles from the city, which would supply shortage, besides the city's phenomenal growth, are spec­ the area with 9,220 K\i\T of prime power at a delivered ulative holding of land, the shortage of capital for private cost of 13.3 mills. This, however, is still quite expensive residential development and the failure of streets and for power. other utilities to keep pace with urban expansion. The largest part of Kodiak's freight traffic by sea is Conditions in Kodiak are such that building new streets with Seattle. Vessels of the Alaska Steamship Company and utilities is extremely difficult and expensive. Road and the Sea-Land Company call at the port of Kodiak construction requires complete removal of the overburden weekly. A great deal of Kodiak's production of seafood and laying of an entirely new rock base. Laying pipes is now flown out to Seattle. Air transport is also extensive­ may involve drilling in rock. Private developers have been ly used for all kinds of freight to and from the islands. unwilling or unable to undertake these expenses. And the Passenger traffic is both by air and by ferry. There are city has been physically and financially unable to keep direct jet flights from Kodiak to Homer, Anchorage, and up with such rapid increase in demand in so short a time. Seattle. The city is a flag stop for Reeve Aleutian Airways flights to the Aleutian Islands, and there is almost daily scheduled service to outlying areas of the Kodiak archi­ TABLE 3 pelago via Kodiak Airways. The Southwest Ferry system POPULATION OF KODIAK ARCHIPELAGO connects Kodiak with Anchorage, the Kenai Peninsula, 1929 • 1966 Seward and the Prince 'William Sound area. Kodiak is the seat of its own municipal government, 1929 1939 1950 1960 and of the Greater Kodiak Borough, a second-class bor­ Kodiak Town° .... ,, .. ,,. 422 864 1710 2628 7500 Afognak Villageb.,.,,,,., 298 197 158 190 ough which includes the entire archipelago from the Trin­ Akhiok Village no no 72 84 150 ity Islands at the southern tip to the Barren Islands in the Kaguyak Villa gee, ·········, , . , .• , . no 31 no 36 Karluk Village ········ .. 192 189 144 129 95 north. A number of state offices located in Kodiak also Larsen Boy Village no 38 53 72 60 serve the outlying areas. A large portion of government Old Harbor Village ·······...... 84 109 121 193 250 Ouzinki Village ...... 168 253 177 214 175 employment in the area consists of civilians employed by Others (includes Port Lions) ' ...... ······ 834 the Kodiak Naval Station. The current number is about Civilian Total •...... , ...... , . 9064 200. In all, government accounts for about 28 per cent of Kodiak Naval Station, approx...... , ...... , , .. 2500 ARCHIPELAGO TOTAL ...... •...... , ...... 11564 the islands' total employment-an unusually low percent­ age for Alaska. Cl Not including Kodiak Naval Station. bMoved to Port Lions and combined with Port Wakefield, 1964-1966. The Outlying Villages C Moved to Akhiok, 1964. d Estimated figures. In the quiet outlying villages there is little economic SOURCE: U.S. Bureau of Census; Kodiak Itinerant Public Health Nurse. activity besides fish processing. With far fewer facilities, PAGE 8 UNIVERSITY OF ALASKA, INSTITUTE OF SOCIAL, ECONOMIC AND GOVERNMENT RESEARCH

there is a generally lower standard of living th~n in the industry to expand and diversify. Diversification has been city-although living conditions of Kodiak villages have the key to economic development and industrial growth long been considerably better than in most Alaskan com­ in the United States, and the same principles will apply to munities of predominantly native population. Villagers of Kodiak. Kodiak fishermen must be ready to move into the Kodiak archipelago have had close contact with white new types of markets as they open up, just as they de­ society and the cash economy for nearly two centuries, veloped the king crab fishery. And if it is true that the first as hunters and trappers then as fishermen and can­ catch of king crab is near the possible sustained yield, nery workers. then fishermen will have to be prepared to increase There were eight villages on the islands before the 1964 the concentration on dungeness crab, and shrimp. Diversi­ earthquake: Afognak, Ouzinkie, Port Wakefield, Karluk, iicaliull must 110L lu ul but Larsen Bay, Akhiok, Kaguyak, and Old Havbor. After also to methods of catch and marketing. To compete on the earthquake both Afognak and Port Wakefield were the world market, Kodiak fishermen must continually moved because of land subsidence to the new location of modernize their equipment and their ideas. And, in addi­ Port Lions, on Kizhyak Bay west of Kodiak. Old Harbor tion, research and training will be required to support was completely destroyed by the tidal wave and rebuilt continuing industrial growth .. on its old location, and Kaguyak was combined with the The basis for diversification and continued expans1011 village of Akhiok at the southern tip of Kodiak Island. is being provided, with full support of the community Earthquake reconstruction payrolls brought something and its newspaper and leading businessmen. The town of a boom to these three villages. All three have, or will is already taking steps to solve the problems of water, soon have, fish processing plants nearby giving them year­ power, land and housing shortages. The new impetus to round employment opp01tunities. And as all of the rebuilt the timber industry and the building of new and larger villages received homes considerably larger than those service buildings, such as the vocational school and hos­ they had had before, as well as electricity, sewerage and pital, indicates that Kodiak will reinforce its position as running water, their material standard of living is some­ a regional service and trade center for areas such as the what higher than in the remaining villages-Karluk, al­ Aleutians and the Alaska Peninsula. ready existing Akhiok, and Larsen Bay. All in all, Kodiak is developing many plans for itself and these plans show that the city is looking ahead to a Conclusion bigger and brighter future. And the outlook is good that Kodiak's continued economic growth will depend on the Kodiak will continue as an economically stable and pros­ willingness and ability of the community and its fishing perous community.

TABLE 4 AVERAGE YEARLY EMPLOYMENT IN KODIAK 1961 - 1965 % Change 1961 to 1961 1962 1963 1964 1965 1965

CIVILIAN WORK FORCE ...... 2,325 2,280 2,388 2,417 2,926 + 25.9 TOTAL UNEMPLOYMENT ...... 134 124 136 141 174 + 29.9 Percent of Work Force ...... 5.8 5.4 5.7 5.8 5.9 TOTAL EMPLOYMENT ...... 2,191 2,156 2,252 2,273 2,752 + 25.6 Contract Construction ...... 24 28 na 176 312 + 1200.0 Manufacturing ...... 606 643 643 492 630 + 4.0 Transportation, Communication and Utilities ... . 79 96 119 124 142 + 79.7 Trade ...... 164 167 160 157 211 + 28.7 Finance, Insurance and Real Estate ...... na na 38 45 na na Services and Miscellaneous ...... 93 96 116 na 196 + 110.8 Government ...... 831 719 765 773 783 5.8 Other ...... 367 376 376 383 442 + 20.4

NOTE: The system of classification at present in use does not have a separate category for fishermen, and to that extent, therefore, inadequately reflects employment in Kodiak. Fishermen who also hold other jobs are generally included in the figures for those jobs. Some resident self-employed fishermen are included in the "Other" category. Fishermen from other areas who operate in the Kodiak are,:i are not included. SOURCE: Alaska Department of Labor.