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. 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. The Alaska Steamship Company eventually enjoyed a near monopoly of freight and passenger service to Alaska. 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 of the Alaska Steamship Company 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. ==End of service==