The Present Condition and Future Prospects of the Yukon

Mr. President and Gentlemen,--thank you very heartily for the applause which you have accorded my name as a prospective member of your Club. I am trying out your city to determine whether I shall remain here and settle as a resident or not. They say the summer is better than the weather we are having now. (Laughter.) I see you have a very good rule which confines the speakers to 30 minutes, and I would ask you for that reason to allow me to read what I intend to say to you, and I assure you that I shall keep within the time allowed.

My subject will be the Yukon, where I have spent twelve years. When your vice-president asked me to address this Club, I told him that on a short two days notice, I could only speak on what I had been most familiar with, namely, Yukon life; but I notice my subject is stated to be "The Present Condition and Future Prospects of the Yukon." I could very easily keep you for a time with stories of life on the trail, in the mining camp, the town life and social life of the miner, the mode of mining, mixed with striking stories of phenomenal, good and bad luck.

In the early days of the Yukon gold excitement, such an address might have interested you, but not now. Every one of my hearers has probably met and talked with some returned miner or prospector, and the freshness of these stories has worn off, especially since the publication of the works of Service, Jarvis, Jack London, and Rex Beach, who have given very accurate pictures of some phases of Klondike and Dawson life. My subject involves more responsibility as I see I am to make some forecast of the future. The condition of the Yukon today may be fairly estimated when you are told that nearly all the lawyers and judges have retired from the country. Whether that migration of the men of the long robe can be considered as a cause or an effect of the present depression, I leave an open question.

The Klondike mining camp was probably the greatest placer camp the world has ever seen, in this respect at all events that no camp ever produced the same amount of gold out of the same quantity of ground. When we think of the Lowe fraction of about 85 feet that produced nearly a million dollars, we don't wonder at the mad rush of men over the terrible passes and over the still more terrible Edmonton trail. We know of an output of $22,000,000 in one year which was reported and on which royalty was paid; and, in my opinion, another $10,000,000 might be added that never paid royalty. In those days the Government was content for the purpose of royalty with the affidavit of the miner as to his output. That was very trusting in a country where perjury was a business and not a crime. It was too trusting. When I say that perjury was a business, I do not mean to say that the great mass of miners perjured themselves; but I do say that very many did and made a business of it. Law suits over priority and regularity of staking were, of course, common. Over 1,000 High Court writs were issued in 1901, and in 1902 as well mostly mining disputes-the law suit often being a gamble, the gam a rich mine, and the costs of the suit the only stake .one the table. In those days the miner followed the pay streak under ground; if it ran into a Government claim or fraction, so much the better. If it ran into a staked claim, various devices were used to hide the trespass, and if all other schemes failed, the title of the owner of the trespassed claim was attacked by the perjury process. I think now, with my experience in trying these cases, I could with the aid of a good lawyer rob any placer claim with impunity. But I have wandered a bit from my subject. Let me say, in concluding this part of it, that visible temptation in the form of the yellow metal is a great breeder of perjury.

The Klondike today is an absolutely changed camp. In former days the creeks were dotted with the cabins and dumps of the individual miner, working out his; claim by the simple windlass, or with his own steam hoist. The pay streak was followed under ground by drifts and tunnels; wherever the pan showed dirt that would pay to hoist, there the miner followed it. In the early years no dirt that did not go 25 cents to the pan was touched; then it came down to ten cents; now two cent dirt will pay to work by the process used by the individual miner. All the paying creeks were worked in this way, but today only three or four of the creeks have miners working in the old way. They are gone and their claims are either worked out or sold to the Guggies, (as everyone calls them), or the Yukon, Gold Company, or the other company known as the Treadgold Company. Besides these two large companies there are several small ones operating dredges or monitors. The individual miner did, of course, disturb the ground and alter to some extent the appearance of the country, yet the contour of the creeks remained and the general effect was not materially altered. Now Bonanza Creek looks as if some gigantic Mastodonic hog had rooted up the entire valley. Where trees and grass, shrubbery and cabins were, now nothing can be seen but a never ending pile of heaped up washed boulders and gravel, called tailings, filling the valley from rim to rim.

It may be thought strange that the dredges should go over the old worked-over ground, but it must be remembered that much of the mining of early days was very wasteful. On the rich claims, in the good old fat days, unless dirt went $30.00 a yard, it was not hoisted. If dredging ground will go 75 cents to the yard, it is not bad. From this it will be seen that dirt that went $3.5o a yard, hardly paid to handle by windlass; but one third of that value makes rich dredging ground. Much of the ground worked by the dredges is virgin, and it will pay to go over the balance for the gold left in the tailings. Besides the creek beds where the richest pay was found, the hillsides and benches contained splendid pay in many places. Some of the hillsides produced large fortunes out of a very small piece of ground, and besides the rich benches, there is an immense area of low grade ground that can only be worked on a large scale by gravity water. Many men and companies who had large tracts of very good bench ground tried to hydraulic by pumping water, using steam power. In every case it was a failure; only where water could be brought by gravity to a reservoir could the ground be worked to advantage, unless the pay dirt was exceedingly rich. Most of the smaller companies have sold out to the Yukon Gold Company or the Treadgold Company.

The Yukon Gold Company bring their water through' an immense ditch over fifty miles, and distribute it by side ditches and pipes to the various creeks. This water is obtained in the Ogilvie range of mountains, where they also have an electric plant using this power for pumping and operating their many dredges. The Treadgold Company have diverted the left fork of the Klondike river, and have, I believe, a magnificent water system and power. These powers are available during the summer months only, but I understand that last fall the dredges worked well into the month of November. The pond in which the dredge floats can be kept fairly warm by injection of steam, and in that way the working days of dredging may be prolonged.

These two large companies now own practically the whole of what is known as the Klondike Creeks, that is, the whole of the old camp tributary to Dawson, and will operate by a comprehensive and well-organized plan. Every yard of their ground has been surveyed and staked, while over a great part of it test pits have been sunk and drill holes put down. The theory of operation, I believe, is this: first, the dredges will win the gold from the creek and river valleys; then the hydraulic monitor will tumble the hills down into the valleys, filling them up. One can have no idea until it is seen, how a hill melts before these big monitors. The stream of water tosses about boulders as large as a man, as a garden hose tosses the chips in a yard. The casual splendid pay in many places. Some of the hillsides produced large fortunes out of a very small piece of ground, and besides the rich benches, there is an immense area of low grade ground that can only be worked on a large scale by gravity water. Many men and companies who had large tracts of very good bench ground tried to hydraulic by pumping water, using steam power. In every case it was a failure; only where water could be brought by gravity to a reservoir could the ground be worked to advantage, unless the pay dirt was exceedingly rich. Most of the smaller companies have sold out to the Yukon Gold Company or the Treadgold Company.

The Yukon Gold Company bring their water through an immense ditch over fifty miles, and distribute it by side ditches and pipes to the various creeks. This water is obtained in the Ogilvie range of mountains, where they also have an electric plant using this power for pumping and operating their many dredges. The Treadgold Company have diverted the left fork of the Klondike river, and have, I believe, a magnificent water system and power. These powers are available during the summer months only, but I understand that last fall the dredges worked well into the month of November. The pond in which the dredge floats can be kept fairly warm by injection of steam, and in that way the working days of dredging may be prolonged.

These two large companies now own practically the whole of what is known as the Klondike Creeks, that is, the whole of the old camp tributary to Dawson, and will operate by a comprehensive and well-organized plan. Every yard of their ground has been surveyed and staked, while over a great part of it test pits have been sunk and drill holes put down. The theory of operation, I believe, is this: first, the dredges will win the gold from the creek and river valleys; then the hydraulic monitor will tumble the hills down into the valleys, filling them up. One can have no idea until it is seen, how a hill melts before these big monitors. The stream of water tosses about boulders as large as a man, as a garden hose tosses the chips in a yard. The casual observer, seeing the mass of gravel and sand pouring into a creek valley, would imagine some mighty natural dam had burst and that the water was pouring through its rock barriers. So long as the individual miner was working in the creeks, it was impossible to operate on the benches with these big monitors, and constant and bitter law suits resulted over the washing down and deposit of gravel and sand on the lower claims. It therefore became necessary to buy out the creek claims before operation on the hills began. This was the opportunity for the holders of worthless claims in the creeks to hold out for a big price; one obstinate creek owner might seriously handicap a large operator on the hills. I believe, however, that nearly all the troubles have been got over and the field is clear for the immense operations to be carried on.

The question is often asked, how long will it take to wash up the known gravel deposits? That question I cannot answer. Some experts say ten years, others say fifty. The immediate effect of the substitution of large operations on the Yukon is a great decrease in population. Dawson, instead of a city of 30,000 in 1900, is today only about 2,500. Whole streets of empty houses, fast decaying, can be seen. The old building that the government used for its offices and paid, I believe, $1,700 a month rent for is torn down and the logs used for firewood. We had 45 lawyers in 1902; today there are only four, and doctors have decreased in nearly the same proportion.

There are other placer creeks not in the Klondike basin, that are in many cases yielding good pay, but nothing like the great results of the Klondike creeks. Forty Mile is still a good camp for dredging, while on Glacier and Chicken creeks individual miners are doing well; also on some of the tributaries of the Stewart, excellent nay is being found. Many of these creeks are far back from means of transportation, and the' cost of getting supplies in renders unprofitable ground that would otherwise pay well. Dredging and hydraulic work will, in my opinion, constitute most of the future operations in the Yukon. Colours can be panned almost anywhere, and from past experience of discoveries it need not surprise us to hear any day of a new and rich strike. The Stewart, the Pelly, the Peel, the Houtalinqua rivers are great streams, and all carry gold gravels, and all have been and are being worked to some extent. But when we consider the vast area of the Yukon and the length of the rivers, and that paying placer gold is only found in spots, we need not wonder that discovery is slow and that prospectors are still looking and hoping for other Bonanzas and Eldorados. My opinion is that such finds are not only possible but highly probable. It has been truly said that the Yukon so far has only been scratched here and there. Parties now and then go off into the interior, and come back with reports of placer finds and quartz finds, but until some means of transportation is found, these discoveries must remain of little or no value.

How far the present operations of the large companies are paying, I of course cannot tell, and I do not suppose my opinion would have much influence on the stock market. Anyhow, I can say this, that a very keen competition exists between the two companies for placer ground. That Mr. Treadgold, who really was the originator of the Yukon Gold Company and who, I believe, knows more about the Yukon placers than any other man, is now buying for a second large company and has built a most extensive and powerful plant for hydraulic and dredging operations is evidence of the faith capitalists have in the country. Dawson and the Klondike will not, I think, decrease any in population, but will rather increase in the near future when the large plants now under construction .are complete and in operation.

The Yukon Gold Company have just about completed their plants and probably next season will see them in full operation, although the Company for the past two or three years have been using the water on many of their properties, and the other Company cannot be long after. Altogether I am hopeful of a steady prosperity for that part of the Yukon for some years.

As to the other regions, such as White Horse and Carcross, there is still doubt; very little doubt as to Carcross. I think a mine, the Big Thing, has been discovered, which will prove a really big thing and be a permanent paying property; I can say this with safety as I believe no stock is offered for sale.

The experience of White Horse has been rather disappointing; a splendid showing of copper was found and considerable development work done. Mines were sold, options taken, and a very complete and expensive plant erected. Copper ore was shipped to the coast smelters, when all at once and without any apparent reason, the work stopped, and has remained so for over a year. White Horse people explain the matter by saying that it is some quarrel between the option holders and the working companies.

The future of the Yukon will to a large extent depend upon the discovery of hard rock mines or mineral in place. Prospects are found all over the country, some samples rich enough to create considerable excitement and the expenditure of some money.

Every one is looking for the elusive mother lode. The placer deposits undoubtedly came from stringers or veins, which have been ground down and eroded by the action of glaciers and the wear of the ages. The question is, have they all been worn down to the bottom? Will any of the various prospects go down? No development of the gold quartz finds has been made, that has so far proved to be of permanent value. One mine, the Lone Star, situated at the head of Bonanza and Eldorado creeks, at a point where the ordinary man would say you ought to find a mine, is being operated on a paying ledge with good values; if that has depth; they have a mine.

All the paying creeks in the Klondike basin take their rise from the base of the mountain, known as the Great or King Dome. All over this mountain prospects, and good prospects, have been found. Some extraordinary samples with free gold were found. Here, if anywhere, the mother lode must be, and a company was organized, and. $75,000 spent in a tunnel over 3,000 feet in length without any result, except to cut some low grade stringers. Instead of sinking on their discovery to establish depth and dip, all this money was spent with no more warrant for it than a hole 65 feet deep owned by an untruthful person, who had found a surface prospect. This has been rather depressing to quartz enthusiasts, and while I say that misrepresentations were made to stockholders, I yet think that the whole work was conducted' without any scientific direction. There was no mining engineer to advise and direct, and the whole work was wrongly conceived and recklessly executed. The failure of these operations does not by any means prove the absence of gold in place in that mountain; I believe it is there somewhere.

To my mind the great need of the Yukon is scientific exploration; some members of the geological staff have made exploration at Carcross, White Horse, and other points not in the Klondike country. So far as mineral deposits in place are concerned, we need a geologist and mining engineer of experience to live there, investigate prospects, and advise. The great cost of mining operations in the Yukon has seriously hindered and delayed -development work. Of the 5,000 claims staked, many have- been kept renewed by representation work; but that work, although sworn in from year to year, has been an absolute farce so far as development goes. Today we are practically with thousands of prospects, and yet no mine in the Klondike district, with the exception of Lone Star, on which systematic effective work is being done.

I am not going to discuss now how far the government should aid by advice and direction the prospectors or owners in development work, but of this I am sure that thousands of dollars which are now wasted would be saved if the prospectors had access to expert advice. Money is thrown away following a prospect which has no geologic value, and in work misdirected and misapplied. I object as a rule to paternalism in politics, but I think this is a kind of paternalism which may be justified on the highest public grounds first, in the actual saving of large sums of money, and for another and perhaps as good a reason, as a safeguard to the, public against wild cat and fraudulent promotions. I am strongly of the opinion that no mining company should receive a charter of incorporation until the facts set out in its prospectus are verified by the report of a recognized mining engineer, and this report deposited in the government mining department. I believe that the percentage of mines to prospects is almost one in a thousand, but if we had that percentage of working mines in the Klondike, our future would be assured. I suppose nothing attracts the public like a beautiful mining prospectus; the trick is played over and over again, and I see no reason why parliament should not by effective legislation, in its company, mining, and criminal law, protect the public from the dishonest mining exploiter. The man caught with a burglar's kit in his possession is considered a criminal, :why not the greater rascal with the undeveloped hole in the ground and the wild cat prospectus!

Mining must always be the chief industry of the Yukon; all other industries are subsidiary to it. Many talk of the agricultural prospects but I have little hope in that direction; with seven months winter and the mercury falling sometimes to 72 below zero, I am 'afraid we are a bit beyond the hardest wheat belt. We do grow excellent vegetables of all kinds, but we ripen our tomatoes under glass. Potatoes of good quality are matured in some years, and oats have been ripened, but I am afraid we shall have to depend on the mines for the future.

The climate is delightful, especially in summer. The absolute purity of the air, the clearness of the atmosphere, gives a feeling of great buoyancy and delight in the open, and barring a few of the rather cold days in. the winter, I enjoyed my life in the Yukon very much. Nowhere are the people more healthy and hopeful; they have absolute confidence in the future. Perhaps one cannot help feeling hopeful in that grand air. I; indeed, share their hopes and believe that soon the Yukon will surprise you with mining developments and be the assured and permanent home of a happy, healthy; and prosperous people.