The story
The company was founded by Charles Peabody, Captain George Roberts, Captain Melville Nichols, George Lent, Frank E. Burns and Walter Oakes. This group of six men began gathering $30,000 by selling 300 shares of stock, at $100 each. Peabody served as president of the company from its creation until 1912. The first vessel they purchased was the 140-foot steamer Willapa.
A railroad to serve the mines in the interior encouraged mining activity and brought more fortune-seekers and tourists. By 1905, service was shifted from the Juneau and Skagway region to the Valdez - Cordova, then eventually to Nome, where Alaska Steamship was ready to capitalize on the bonanza by switching its ships accordingly. Their ships supplied the growing number of religious missions that were being established and the burgeoning fish cannery industry.
When the Klondike Gold Strike took place in 1897, Charles Peabody reorganized the company and rapidly expanded his fleet of ships to meet the sudden demand for service. In 1898, the stockholders formed the Puget Sound Navigation Company as a subsidiary. The new company was legally organized in Nevada where corporate law was more lenient. The Puget Sound routes allowed the company to continue to use some of its smaller, older vessels as they became unsuitable for the strenuous Alaska routes.
In 1902, the Puget Sound Navigation Co. started a steamship route from Port Townsend and Port Angeles, Washington to Victoria, British Columbia, Canada, carrying both freight and passengers. Their competitor the Pacific Steamship Company had committed their entire fleet of ships to the Klondike run and were unprepared to switch to alternates when the gold rush subsided. The Canadian Pacific Railway, their other potential competitor, decided at first that would not compete on the Victoria route, and chose to concentrate on their Empress ocean-going sleek steamships which fed passengers into their rail route across the Canadian Rockies and to their Empress Hotels in Victoria and Vancouver. On May 2, 1903, Peabody and his associates purchased the controlling stock of La Conner Trading and Transportation Company. They initially named the merged company the Inland Navigation Co. but later resumed using Puget Sound Navigation Co. The new company became the biggest inland shipping company of Puget Sound.
Merger
In 1907 the Alaska Syndicate, funded by Morgan & Co. and the Daniel Guggenheim, bought the company to service its growing copper mining operation in the Wrangell Mountains. They merged its operations with the Northwest Steamship Company, which owned 12 canneries, and a retail store, but retained the Alaska Steamship Company name. The merged company began operations with 12 ships, and they added to their fleet until they had 18 ships. They expanded service from Ketchikan to Kotzebue. They served all of southwestern Alaska, southeaster Alaska, the Seward Peninsula, the Bering Sea, St. Michael and Nome. The resulting company had a virtual monopoly on the Alaska shipping industry.
Charles Peabody retired in 1912 and S.W. Eccles of the Guggenheim Company.
In 1915, Kennecott Copper Company, also owned by Morgan & Co. and the M. Guggenheim Sons, acquired the Alaska Syndicate's interests in the Alaska Steamship Company with a stock transaction.
The company greatly benefited from the Merchant Marine Act of 1920, which required ships connecting two United States ports to fly the United States flag. The legislation forced two Canadian shipping companies out of the Alaska market. The Alaska Steamship Company eventually enjoyed a near monopoly of freight and passenger service to Alaska.
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In the 1930s the company bought its long-time rival, the Pacific Steamship Company. Many Alaskan residents began complaining about irregular service and high fares. As a result, the U.S. Congress passed the Intercoastal Shipping Act of 1933. It required specific schedules and approved, published cargo rates.
World War II and afterward
When World War II broke out, the Federal Government took control of most U.S. registered ships to support the war effort, including the company's fleet of 15 vessels. The company became an agent for the War Shipping Administration and was assigned to manage its own ships along with sixty others. During the war, five ships were lost. Before World War II, 42 ships had served Alaska, but after the war, only seven were in service. The Alaska Steamship Company was purchased in August 1944 for $4,290,000 by the Skinner and Eddy Corporation of Seattle. Skinner and Eddy also purchased the only other major Alaska shipping company to survive after the war the Northland Transportation Company.
The company's business was slowly eroded due to the end of federal war-related subsidies, rising fuel and labor costs, and new competition from the trucking industry and cargo airlines. In an effort to reduce costs, the Alaska Steamship company added tugs, barges, and container ships to their fleet. These allowed for smaller crews, faster loading and unloading, and less damage to the cargo.
Shift to tourism
After World War II, when the freight business slowed, the company decided to focus on tourism and introduced their ship the Alaska in January 1946. It was later joined by the Aleutian, Baranof, Yukon, and Denali. The ships called at Ketchikan (two days journey), Juneau (three days journey) and Seward (five days journey). Intermediate ports of call included Wrangell, Petersburg, Skagway, Sitka, Cordova, Valdez, Kodiak and Seldovia. All the steamers could accommodate over 200 passengers in classes ranging from steerage to a deluxe cabin with private bath.
From Wikipedia’s article on Alaska Steamship Company, shared under CC BY-SA 4.0.4