During the fall and early winter of 1907, Katalla suffered a serious menace to its prosperity, owing to its total lack of a harbor.
The bay is but a mere indentation, and an open roadstead sends its surf to curl upon the unprotected beach. The storms in winter are ceaseless and terrific. Steamers cannot land and anchors will not hold.
As Nome, similarly situated, is cut off from the world for several months by ice, so is Katalla cut off by storms.
Steamer after steamer sails into the roadstead, rolls and tosses in the trough of the sea, lingers regretfully, and sails away, without landing even a passenger, or mail.
In October, 1907, one whole banking outfit, including everything necessary for the opening of a bank, save the cashier,—who was already there,—and the building,—which was waiting,—was taken up on a steamer. Not being able to lighter it ashore, the steamer carried the bank to Cook Inlet.
Upon its return, conditions again made it impossible to enter the bay, and the bank was carried back to Seattle. When the steamer again went north, the bank went, too; when the steamer returned, the bank returned.
In the meantime, other events were shaping themselves in such wise as to render the situation extremely interesting.
A few miles northwest of Katalla, the town of Cordova was established three years ago, with the terminus of the Copper River Railway located there. Mr. M. J. Heney, who had built the White Pass and Yukon Railway, received the contract for the work. The building of wharves in the excellent harbor and the laying out of a town site capable of accommodating twenty thousand people—and one that might have pleased even the fastidious Shelikoff—was energetically begun.
Early in 1907 the Copper River Railway sold its interests to the Northwestern and Copper River Valley Railway, promoted by John Rosene, and financed by the Guggenheims. It was semi-officially announced that the new company would tear up the Cordova tracks and that Katalla would be the terminus of the consolidated line. The announcement precipitated the "boom" at Katalla.
Mr. Heney retired from the new company and spent the summer voyaging down the Yukon.