Another initiative to move the capital was defeated by state voters November 6. Capital move opponents had taken the initiative proposal to court to take it off the ballot, but after capital mover appeals the state supreme court ruled for its inclusion on the November ballot. A group of engineers and architects had studied the issue and estimated that if the move was approved, the cost for relocating the capital would be at least $262 million, costs being shared by the state and federal governments as well as by private investment. Juneau civic leaders and business persons had organized Alaskans United to lobby voters around the state to oppose the move, to telling effect. Capital movers promoted the initiative with the slogan “Let’s build it” (a new capital), which Alaskans United countered with “Let’s build Alaska” for the greater good of the whole state.
Following the election, Senator Ernest Gruening spoke to the Juneau Chamber of Commerce to urge area unification and civic improvement as a means to strengthen Juneau’s position as capital city. Earlier efforts by the city to develop a million-dollar capital site plan had been declared unconstitutional by the state supreme court as to funding, and the city abandoned the effort.
Juneau’s first commercial jet, a Pan American Boeing 707 Clipper, landed at the airport February 3 with appropriate ceremony and inaugurated daily service Juneau-Seattle, followed by Pacific Northern Airlines with Boeing 720 jet service starting April 27. Additional aircraft navigation aids also began operation to help ensure safer air transportation to the capital. Dedication ceremonies at the airport October 24 highlighted the new improvements made this season including a new control tower, fire and maintenance station, safety equipment additions, and runway upgrades. Emphasized was Pan American’s 100 percent completion of all its flights at the airport since starting its new jet service, a rare record anywhere in the states, a point also made to defuse capital movers’ arguments about Juneau’s “isolation”.

Inaugural jet service to Juneau, Feb. 3, 1962. University of Alaska Fairbanks, Elmer E. Rasmuson Library, Alaska and Polar Regions Collections, Captain Ralph W. Savory Collection, ca. 1935-1960, UAF-1993-28-9.
The U.S. Forest Service Mendenhall Glacier Visitor Center opened May 13, the only center in the country dedicated to glacier interpretation. Planning continued for a “glacierama” tourist development project by the glacier, including a gondola lift and ski area in the Steep Creek basin. The Forest Service also continued developing and improving camping and recreational facilities near the glacier. Public education programs were started at the visitor center, a tradition now continued with the annual winter “Fireside Chats” programs.
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The state highway department moved its headquarters in January to a new building in Douglas, which was financed and built by local interests. The old Mayflower School in Douglas was remodeled to house the new Marine Institute of Oceanography, a branch of the Fisheries School of the University of Alaska, and staff began moving in by May. Highway construction extended Juneau’s road system to Yankee Cove, with plans to continue north to Berners Bay. The extension was dedicated October 7. Dredging work was proceeding for several projects – the Mendenhall Bar, the Douglas Boat Harbor, the excavation of which was finished in August, and the new harbor north of Harris Harbor (Aurora Harbor), which was in mid-development, and would provide moorage for an additional 500 boats. An additional $200,000 was used by the new federal fisheries lab at Auke Bay to develop a freshwater system to use Auke Lake water for their research projects. The Snettisham Hydroelectric Power Project, estimated to cost over $41 million for the 20-year construction time frame, was authorized by Congress in November. Local power utility AEL&P installed a new 3500 hp generator at their Capitol Avenue plant, while AJ Industries had been trying to interest either the city or AEL&P in buying their hydroelectric properties.
Juneau voters approved two bond proposals July 17 for capital improvements. One bundle obligated a total of $2,775,000 for general face-lifting of city streets, sewer improvements, and boat harbor facilities. They also authorized a sale of a $375,000 bond for constructing a downtown ferry terminal for the upcoming Alaska Marine Highway ferry system. The state had already sited and was constructing another terminal at Auke Bay, but Juneau civic leaders promoted this project to directly benefit local businesses and provide a more convenient access point for travelers to and from the city. The state terminal project was disrupted by a large fire September 7 on the project’s pile driver, causing an estimated $100,000 in damage. No one was injured, but the project’s timetable was set back. The system’s first vessel of three Southeast ferries, the M.V. Malaspina, was dedicated by Governor and Mrs. Egan in Seattle in June with operations beginning early next year. The state also began recruiting in September to fill 120 crew positions for the system.
A large Borough Study Group had been formed last year and met throughout this year to develop plans and a charter to form a greater Juneau area borough, which generally seemed to be getting approval. The boundary subcommittee recommended in March that the borough extend from the southern end of the Port Snettisham drainage along the mainland and Canadian boundary up to Antler River in Berners Bay and include offshore islands from Little Island down through Douglas Island. This would include the area being studied for a major power project along the Speel River in Port Snettisham. By mid-December the study group report was near completion for the formation of a borough and recommended going for a first-class borough, similar to a first-class city in zoning, bonding and taxing abilities. It would be presented at a public hearing in mid-January 1963, after which a petition would be circulated to submit to the state for review and approval and then an election would be held for voters to decide on its formation.
In other local government developments, planning for the proposed “Outer Drive” from the city center out to the airport area raised considerable controversy on its routing and disruption of housing and businesses located in the right-of-way. In a heated hearing in July, residents also raised many concerns about cost, accuracy of earlier feasibility studies, and need for the project in relation to other pressing channel needs. Much more planning was advised to address those issues. A new juvenile detention center was established at the state jail, which is administered by the Juneau police department. A survey was conducted by the local civil defense office in the spring to locate buildings that would be suitable for emergency fallout shelters in case of a nuclear attack in Alaska. Work also continued on assessing old mine tunnels for shelters. A new sanitary landfill was opened in December in the Lemon Creek area to replace the old dump on the Thane Road just south of the rock dump. That month, city records also revealed that 45 old dilapidated buildings or structures had been razed since August in an accelerated effort to improve the city’s image and in some cases create space for new businesses or additional parking.
Health, sanitation, safety, and housing problems in the “Native Village” were probed in a community meeting sponsored by the Alaska Forum in June. Residents there cited unconcern and inaction by the city to address problems, but the mayor laid blame on federal bureaucratic inaction and lack of clear legal property title to the area as barriers to improvement and getting funding to address issues. The village also lost a suit filed by the federal government to protect a 5-acre plot of tidelands in front of the village originally held in trust by the government for Tlingit people. The city and state claimed that the area was not exempted for tribal people in the tidelands transfer act following statehood, and could be used by the city for their extension and improvements, in this case allowing a developer to fill in the area and construct an apartment/hotel complex there. The federal judge hearing the case ruled against the plaintiffs, citing insufficient evidence of continuous use of the area by tribal people, thus allowing the city to claim the area for community development (now occupied by the Driftwood Lodge).
In Douglas, the big project was construction of a new boat harbor between Mayflower Island (aka Juneau Island) and the beach. The tidelands area behind a new dike, built the year before as access to the new harbor, was to be filled in with harbor dredging spoils and the reclaimed land would eventually be developed for a recreational area. Before that could happen, however, existing structures fronting along the beach perimeter were to be removed, which belonged to residents of the Douglas Indian Village. Douglas City council received word from the Bureau of Indian Affairs that the village land was not protected in federal trust, so the city claimed it as city land and proceeded to negotiate with residents for compensatory settlements or condemn buildings by imminent domain proceedings. Subsequently the city burned down the structures in the spring, apparently when residents were away, to be able to proceed with the dredging/fill operations. Most residents lost most of their possessions and received little if any compensation nor were provided alternative housing, leaving a traumatic scar in their lives to present times. The old abandoned Douglas Natatorium, a historical landmark and former civic center, was also torn down and burned as part of the beach-clearing operation. Harbor dredging operations commenced by early summer.
Explosive wind from an avalanche off Mt. Juneau March 22 heavily damaged a dozen homes, buried vehicles, and snapped off power and telephone poles in the Behrends Avenue and Ross Way neighborhood. No serious injuries were reported. Several fires occurred with tragic or near-tragic consequences. In February the 28-unit Gold Lodge apartment building suffered extensive damage after a trash can fire spread from one unit to destroy half a dozen units adjoining it. All residents were evacuated, but no serious injuries resulted. In May, however, an old two-story house fire along Glacier Avenue left 14 people homeless, while another fire on June 13 in the Native village took the lives of four children. A few days later a can of spirit fluid exploded in a garage along Willoughby Avenue where two boys were playing, and flames enveloped the clothes of a 14-year-old boy. His 11-year-old companion quickly smothered the fire with his coat, an action credited with saving his friend’s life. An historic structure was also lost in July when the pattern shop for the old Treadwell foundry was destroyed by fire.
Another source of trouble was noted in May when police reported that at least four complaints had recently been lodged about dogs biting children, in one case quite severely. The city reminded residents of the dog ordinance, requiring dog owners to license their animals and either confine them within their yards or put them on-leash outside their property. The police department was making a concerted effort to round up all stray dogs and impound them until owners comply.
The 1961-62 school year marked the first year of the completed Juneau High School (with the gymnasium, auditorium and third floor addition) and was renamed Juneau-Douglas High School. A total of 93 seniors graduated May 29, the largest class in the area’s history. Area voters approved a bond proposal in November of $776,000 to construct a 21-classroom elementary school in the Valley (Glacier Valley School). In October, the Juneau-Douglas Community College went on the air to offer a 2-credit course on the American economy in conjunction with the University of Alaska and KINY-TV. Seen weekdays in a half-hour slot, the course would be broadcast through the school year, with weekly discussions for local participants at the high school.
Tourism continued to add to area economy with four ships making 68 arrivals during the May 1- September 26 season, bringing an estimated 11,000 visitors to see area sights. A new attraction was added for visitors and locals alike when the “Hoochinoo and Hotcakes” melodrama opened in July at the old AJ Last Chance Basin camp, produced by Juneau-Douglas Little Theater and Juneau Chamber of Commerce. The production included a short mine train tour through mine tunnels to reach a channel viewpoint above the AJ mill. Several young Native artists began work in June at the Juneau Art Center, where they could be observed at work by visitors and the general public. A Japanese film crew from the Japan Broadcasting Corporation was in Juneau in September to film scenes around town and the glacier as part of a 17-part drama series entitled “The Story of Alaska” to introduce viewers to Alaska.
In January, an engineer inventor announced that his investment group had received state prospecting rights to dredge for gold in an area around Grand Island, just south of Taku Inlet. He claimed that his hydraulic dredge could recover gold there, that was indicated from various government documents and surveys in the area. A small home industry was starting in the area with seventeen families banded together in a cooperative to raise chinchillas for pelts. They are part of a larger national cooperative that supplies feed, equipment, expertise, and marketing. The pelts are one of the highest value furs for the fashion market and command up to $160 for a high quality finished one. Juneau’s unique poultry farm, however, was closing down as the Hurlock family members went off into different endeavors. Providing fresh eggs, chickens, and vegetables the last twelve years, it had become Alaska’s largest egg ranch in the state, but extensive efforts by the family to find an operator for the business failed. “No one – but nobody – wants to work seven days a week anymore,” said Mrs. Hurlock, but added that they may continue to supply produce for the local markets.
A variety of community events enhanced the local culture and recreation scene. In March the Filipino Community hosted a reception for legislators and their wives to introduce them to special folk dances, songs, and exhibits of treasured family heirlooms. President of the state Senate, Senator Frank Peratrovich highlighted many achievements of Juneau’s Filipino community in his address. Juneau hosted over 250 scientists from Alaska and elsewhere for the 13th annual Alaska Science conference. The Naanuk Club of local Juneau scuba divers hosted their first fun dive in May off Shrine Island to search for an elusive large octopus thought to reside there. The dive was filmed for later broadcast on KINY-TV, and spectators were also able to enjoy fresh crab brought up and prepared by club members. Auke Bay’s first sailing boat race was held on 4th of July, with five young contenders competing with five different crafts, three of which were built by their owners. They were forming a club and anticipated this event would be the first of many such races. Later that month, the Juneau Sandblasters golf club announced big plans to develop the “Million Dollar Golf Course” recreation area on the site of the former AJ Mine tailings dump. The club was opening up the “Tee House” for equipment rental and to serve a fast-food menu. Plans call for eventual development of tennis and horseshoe courts, an archery range, picnic area, as well as general golf course cleanup and improvements. The Juneau Symphony was founded in the fall. Noted Tlingit elder Dr. Walter Soboleff shared many aspects of Tlingit culture that add values to Alaskan living to a large audience at the new glacier visitor center’s winter lecture series.
The year ended with Juneau struggling with the highest recorded snowfall in its history. Over a four-day period, city crews worked unceasingly to maintain its thoroughfares and remove the load, some employees working almost continuously up to 45 hours.
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