Last year 23 Alaska gold dredges produced $1,767,753 worth of gold; this year 25 dredges made a gold output of $1,848,596. The new dredges include two, installed at Nome, of the largest ever built in Alaska. In addition to the dredges that were operated during the year four or five more are projected, some of which will be produc tive in 1924. It is significant that in spite of the adverse conditions that now affect all gold miners, gold dredging is on the increase in Alaska.

COAL

In 1923 Alaska produced, from 12 small mines, 120,000 tons of coal. The largest quantity came from the Evan Jones mine in the Matanuska field, and the Healy River mine in the Nenana field, both served by the Alaska Railroad. The significant feature of the year is that the Territory is supplying more and more of its own fuel.

Though some exploration of the high-grade coal of the Matanuska and Bering River field was continued in 1923, it has not yet been proved that these fuels can be mined cheaply enough to find an export market. Meanwhile evidence of the enormous reserves of lower grade bituminous and lignitic coals in Alaska is accumulating each year. Reports show the finding of workable beds of coal carrying about 60 per cent of fixed carbon at Mile 341, on the Alaska Railroad. This coal, which has been opened up, occurs in the Cantwell formation (Eocene), which is widely distributed in this region and long known to carry small seams of coal, but this is the first bed found that has been proved to be of commercial value. The bed mined is from 5 to 6 feet thick. The discovery of the bed itself is significant, as it is easily workable and very accessible. Of possible greater significance is the proof of the presence of a new coalbearing formation near the railroad.

Though the development of Alaska's very high-grade coal has thus far been disappointing, there are vast coal reserves of less fuel value in the Territory, and a considerable percentage of these has been made accessible by the Government railroad. There can be no reasonable doubt that these reserves will eventually be drawn upon to supply the growing population of the Pacific seaboard.

There are enormous areas of coal-bearing formations in northern Alaska, though most of them are now too inaccessible to be utilized.

The Geological survey last summer explored the Arctic littoral between Cape Beaufort and Wainwright Inlet, and found evidence of a northern and inland extension of the Corwin coal beds. Some gently folded coal beds were found on Kukpowruk River, 5 or 6 miles from the coast, which dip from 20 to 40 degrees and are not broken. Some 13 beds were seen, 4 to 10 feet thick. Though not yet analyzed, these coals appear to be of the quality of the Corwin coals, which are sub-bituminous. This part of the Arctic coast is accessible to vessels from 2 to 3 months, and it affords better shelter than that at Corwin. These coals, which are probably of Jurassic age, might be utilized to supply Nome and northeastern Siberia.

PETROLEUM

The only oil produced in Alaska in 1923 was obtained from a dozen small wells, one of which was drilled during the year on the single patented tract of petroleum land in Alaska, in the Katalla field. These wells are owned by the Chilkat Oil Co., which finds a ready local market for its product in the form of gasoline produced in its own refinery.

The search for oil has been continued, but except in the Cold Bay field there has been no drilling in new fields during the year. Drilling was in progress during 1923 at Pearl Dome, 18 miles from the coast. Here the Associated Oil Co., sank two wells, about 500 and 950 feet deep, but suspended drilling in June. The Standard Oil Co., drilling on the same structure, reached a depth of 300 feet by August and is reported to have reached about 700 feet by November and 1,400 feet in March, 1924. The company began the installation of a second drill in August. It is reported, from a hasty examination, that what is known of the geology near Chignik, in the Chignik region, south of the Cold Bay field, is not favorable to the presence of petroleum. As the result of a geological survey of the northern part of the Alaska Peninsula, it is reported that some of the structures and the formations are favorable to the presence of oil. A small seepage has long been known in the region near the mouth of Douglas River, which flows into Cook Inlet.

Last summer an examination was made of oil seepages which have long been known near Cape Simpson, about 50 miles southeast of Point Barrow, the northernmost point of Alaska. The report shows that there are two very large seepages emanating from small ridges about a mile apart and several miles from the coast. These are marked by flowing petroleum, and cover many acres. There is a very large accumulation of petroleum residue at these seepages. The surface exposures consist of clay shales with hard, thin partings of calcareous shale which lie nearly horizontal, and are probably of Jurassic age. A large area was explored inland from the Arctic coast between Cape Beaufort on the south and Point Barrow and Cape Simpson on the north, and the Meade River was ascended for some 150 miles. These surveys indicate a wide distribution of what is believed to be the formation from which the Cape Simpson seepages emerge, which is probably of Jurassic age. These rocks near the north Arctic coast are little disturbed, but are increasingly folded to the south, toward the mountains. No other seepages have been found, but what is known of the geology is not unfavorable to an

oil field. This entire region lies in naval petroleum reserve no. 4. and it was examined by the Geological Survey at the request and expense of the Department of the Navy.

The Geological Survey continued its work during the year by 10 parties in the field, distributed as follows: 1 in southeastern Alaska, Prince William Sound, petroleum fields on Alaska Peninsula, in Alaska Railroad and Chandalar districts. Three parties were also employed in naval petroleum reserve No. 4, in northern Alaska. The areas covered by these surveys were 8,570 square miles of geologic reconnaissance and 6,530 square miles of topographic reconnaissance. The best means of accelerating the mining development and thus give tonnage for the Alaska Railroad is to extend these surveys farther.

OIL PERMITS

During the fiscal year 86 applications for oil permits were filed in the land office covering 410,951 acres. The total number of applications filed to June 30, 1924, is 1,187; the total number of acres included is 3,138,717.

A comparison with the fiscal year 1923 is shown in the following table:

Twelve townships, whole and fractional, were surveyed on the Kenai region during the fiscal year 1924, but for lack of draftsmen the surveys have not been worked up.

Seventy-five mineral surveys, embracing 191 locations: 12 forest surveys, and 23 miscellaneous surveys were approved.

During the present surveying season the rectangular surveys will be extended to cover the Stikine Valley from the mouth of the river to the International Boundary Line, and will be referred to the Copper River Meridian. Small areas will, also, be surveyed in connection with the Seward and Fairbanks meridian.

Forests-The southern coastal region of the Territory as far north and west as Cook Inlet carries a luxuriant forest growth of the type occurring along the coast of Oregon, Washington, and British Columbia. The commercial species are Sitka spruce, western hemlock, western red cedar, and Alaska cedar, the first two forming the great bulk of the timber stand. The shores of the mainland and of the 11497-24

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numerous island groups are forested from the edge of tidewater to an altitude of about 2,000 feet.

These southern coastal forests have been largely withdrawn from the open public domain and made a part of the national forest system. They are administered by the Forest Service of the United States Department of Agriculture.

The national forest area in Alaska is divided into two administrative units, the largest being the Tongass National Forest of 15.000,000 acres, which is almost coextensive with the southeastern Alaska panhandle and is estimated to contain 73 billion board feet of merchantable timber. The Chugach National Forest embraces 5,000,000 acres along the shores of Prince William Sound and contiguous to the Alaska Railroad between Seward and Anchorage. It carries 61⁄2 billion board feet of timber. Seventy per cent of the merchantable timber on these forests is western hemlock and 20 per cent Sitka spruce.

Each national forest is in charge of a supervisor, with headquarters at Ketchikan and Cordova. Rangers, log scalers, and other field officers are located at most of the towns in the national forest region and a fleet of sea-going motor launches is maintained to attend to field work. A general headquarters for all forest service work in Alaska is maintained at Juneau, the directing officer being the district forester.

Water power-The excellent water-power resources of southeastern Alaska are a very important factor in the industrial development of this section of the Territory. They can supply the cheap power which is essential to the development of the extensive mining and pulpwood resources of the region and their use for electrochemical industries is now receiving attention. Small industrial plants, as well as the various towns, are benefiting materially from the presence of the many small power sites that can be developed at little expense. Extended studies are being made of the water-power possibilities of southeastern Alaska. The Forest Service and the Geological Survey initiated stream flow measurements on the principal power sites in 1915, and this work is still in progress. Automatic stream gages are used to secure a continuous record of the flow for all hours of the day and every day of the year. In 1921 and 1922 the Forest Service and the Federal Power Commission covered all of the better sites with surveys to determine the power capacities and methods and costs of development. The data obtained to date on power resources are now available in a bulletin recently issued by the Federal Power Commission. Over 450.000 horsepower has been covered by the surveys and a more thorough exploration will undoubtedly disclose many important units not now known to exist. The sites studied so far are well adapted to industrial use as they can be cheaply developed, have ample water storage for the winter period of normal low flow and are well located with respect to good harbors and navigable waters.

Examples of the better power sites are the following:

In many cases power from two or more sites can be easily concentrated for use in one industrial plant. For example, 50,000 horsepower can be developed in one power house from two high lakes adjacent to the head of Port Snettisham; 54.000 horsepower is available from three near-by sites on Bradfield Canal.

The region has numerous small but excellent water-power units ranging in size from a few hundred to ten thousand horsepower.

The power sites of Alaska are controlled by the Federal Government and can be occupied and developed under long-term leases from the Federal Power Commission. Thirty-two permits and leases for the power development in Alaska are now in effect.

Aids to navigation.-Aids to navigation are established and maintained by the Lighthouse Service of the Department of Commerce, the work in Alaska being conducted from the district headquarters at Ketchikan under the direction of the superintendent. A supply and buoy depot is also maintained at Ketchikan. Two lighthouse tenders, both oil-burning steam vessels built especially for the work in Alaska, are operated throughout the year in connection with the work of establishing and maintaining aids. These are the Cedar a large steel vessel, and the Fern, a smaller wooden vessel.

During the year 31 new aids to navigation were established in Alaska. These include 20 lights on shore, 2 lighted buoys, 1 fog signal, 3 unlighted buoys, and 5 day marks. Several of the new lights are located on the Seward Peninsula in regions heretofore without aids. Three lights and 4 day marks, which are no longer needed, were discontinued. Several additional new aids will be established before the close of the present summer, including 5 lights, 2 gas buoys, 2 unlighted buoys, and 1 fog signal, the latter to be an automatic bell.

In March, 1922, an appropriation of $125,000 was made by Congress for new aids to navigation and improvements to existing aids in Alaska. From this appropriation important improvements have been completed within the year at point Retreat, the northern extremity of Admiralty Island, and at Guard Island, located near the western end of Tongass Narrows. At the former station a watched light and a compressed-air diaphone fog signal have been established to replace an unwatched acetylene light, and suitable buildings and other facilities have been constructed, including separate dwellings for two resident keepers with families. At the latter station a compressed-air diaphone fog signal has been established to replace a bell operated by clockwork; a concrete building for housing the fog-signal machinery and to support