Two Follies: The History of Beringia and the Fiftieth State

Two Follies: The History of Beringia​

John Watters
Classroom 14, 8th Grade​


Introduction


Beringia is the largest American state by area, reaching some 3,300 miles east-to-west at its greatest expanse. Straddling six International Time-Zones, and covering in excess of one million square-miles, it is the greatest national territorial division in the world. It is the only American state that borders two nations, and which has territory in the continent of Asia. From its earliest days, the State of the Midnight Sun has played a critical role in American history, be it economically or strategically. But if not for the vision of two men, the fiftieth state might never have existed.

Both were ridiculed in their time - little was believed to exist in the far north other than ice and polar bears. And at first, it appeared as if the critics were right. The harsh, barren lands of Beringia swallowed man and machine alike. Vast fortunes were raised, and lost just as quickly. William Seward and Washington Vanderlip would both perish before their dreams came to fruition, consumed by the lands they had become obsessed with. But to those who followed in their footsteps, a great bounty would spring forth.


Kamchatka

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1899 map of Russian Far East.

In 1843, the American whaler Hercules sailed into the Sea of Okhotsk. She was the first American merchant-ship to venture to the far reaches of the north Pacific, into what was then the domain of Imperial Russia. Cruising along the coast of the Kamchatka peninsula, the New Bedford ship found waters rich in Bowhead whales. Captain Ricketson’s heavily laden vessel triumphantly returned to the United States, marking the start of American interest in Kamchatka. In the years to come, large American whaling fleets would venture into the Sea of Okhotsk, the Bering Sea, and even through the straits into the Arctic Ocean beyond. Where the whalers went, the seal-hunters followed. The Northern-furred seals of Beringia were highly prized, and massive harvests were conducted starting in the 1860s. Initially confined by treaties with Russia to hunting on the Commander Islands, American seal-hunters continued to push the frontier westward. Landings were made on Kamchatka proper and on the Kurile Islands. Bounties for seal, otter, fox, and sable hides made with the indigenous peoples, and hunting by Americans, soon led to a renewed boom in the fur trade in the Pacific. American influence in Russian Siberia was growing.

As the 19th century progressed, the edges of the the Russian frontier were being pushed past Central Asia. Kamchatka, and other parts of the Far Eastern provinces, long an overlooked fringe of the Tsar’s domain, was to be brought under greater Russian control. But this would prove to be a difficult task. Sheer geography made Russian administration difficult - the main trading center and port of Petropavlovsk was closer to San Francisco than Moscow. It was the Pacific that tied the scattered communities of the Far East to global trade, not any land routes that passed through Russia. Yankee traders, in search of new frontiers after the end of the California Gold Rush, flooded across the Pacific, spurred on by the tales of whalers, or the brave souls who voyaged to Siberia as part of the failed Trans-Siberian Telegraph Expedition. The native peoples, by now long accustomed to the American articles traded by whalers and fur-traders along the coast, prized these goods, and preferred them to those offered by the Russians, who had for many years forced them to pay tribute, and offered little of value in return. American merchants like Enoch Emery, W. H. Boardman, and Mr. Fletcher of Tagil would build vast trading networks across the Russian Far East. American goods were sold almost exclusively, even by those Russian traders and storekeepers that did exist. Even items as simple as wooden planks were imported from California. An event signifying of the level of American influence in the region occurred during the Crimean War. When French and British forces advanced on the port of Petropavlovsk in 1855, the Russians hastily retired into the hills. The Yankee merchants who were left were not so keen at abandoning their livelihoods, and in the face of the marauding Europeans, hoisted the American flag. Petropavlovsk’s gun batteries, barracks, and other government buildings were destroyed, but the trading district and the homes of the populace were left unmolested.

***


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Above: Petropavlovsk street, 1899 Below: Petropavlovsk harbor, 1904
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By the time of the First World War, Kamchatka had become a Far Eastern province on the rise. 45,000 Russians, Cossacks, Ukrainians, Koreans, Chinese, and native peoples called this place home. Petropavlovsk, then named Petropavlovsk-Kamchatsky, was the main administrative center and harbor along the peninsula. With a population of 2,500, the town was the largest in the region. Without any rail or road links to the other Pacific provinces of Russia, Kamchatka was dependent on coastal steamers and cargo ships to connect with the rest of Siberia. The fur trade had declined in importance, but attempts to develop timber and mining operations had begun, and a boom had started in the fisheries off the peninsula. An ever growing Japanese population and the depletion of Baltic fishing stocks led to an expansion of the fishing industry in the area, one that would be interrupted in 1914 with the start of the First World War.

In 1918, Entente forces landed in the Russian Far East. While most of the powers involved only intended to lend aid to the struggling White Russian forces in Siberia, the Japanese had other plans. Fearing the possibility of Communist troops on the borders of Manchuria, Korea, and Sakhalin, and hoping to increase their influence in Siberia, the Japanese remained after the withdrawal of the other Entente armies in 1920. Their soldiers occupied parts of the Far East, including the Kamchatka peninsula. As anti-communist forces in the west began to collapse, the Japanese backed a rump White state, hoping to create an effective buffer state against the advancing Reds. The Khabarovsk Provisional Government was formed under the leadership of Admiral Kolchak in 1920. The White forces of the Admiral had endured an agonizing two-thousand-mile retreat from Krasnoyarsk, and were on the edge of disintegration. Japanese funds, military supplies, and troops were the only thing saving the KPG from utter collapse. It was little more than a puppet state, and in the northern territories theoretically under KPG rule like Kamchatka, Japanese occupation troops were the real authorities. Meanwhile, the Moscow backed Far Eastern Republic faced off against the combined White-Japanese forces.

***

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Washington Vanderlip, circa 1921

A man arrived in Moscow in September, 1920. Washington Baker Vanderlip, a fifty-three year old Yankee mining engineer, journeyed boldly into the heart of Russian Bolshevism. Vanderlip had long been a globe-trotter. He had engaged in prospecting expeditions on all continents excluding Antarctica, and had become a well respected surveyor. It was one of his past expeditions that brought him now to Russia. In 1899, a younger Vanderlip led an expedition through the depths of the Russian Far East into Kamchatka in search of gold. Although this effort failed, he would become obsessed with Siberia. Additional surveying trips prior to the outbreak of the First World War convinced him that an untapped natural bounty was ripe for the taking. The charismatic Vanderlip had made many contacts throughout the international-business community, and in a six-month blitz he managed to form a trade-syndicate through little more than sheer force of will. Major partners included J. P. Smith of Standard Oil of California, Edward L. Dahoney of Pan-American Petroleum, and William B. Thomson of Newmont Mining. However, by far his most valuable backer was Frank A. Vanderlip, president of National City Bank, a forerunner of Chase-National. The two men had met at the University of Illinois in 1884. Frank Vanderlip was at the time a twenty-year old machine operator at a furniture shop taking mechanics classes at Champaign. A mutual friend by the name of Wynn Meredith had introduced them, trying to find out if they were related. They quickly established that they were only very distant relatives, but Frank would become friends with the seventeen-year old Washington, who was also taking mechanics courses. While Frank would abandon his education the following year and go on to work at a local newspaper, the two men would remain in contact over the following years. When Washington was later hired to work on numerous mining surveys, he forwarded tips to his friend, now working as a financial editor in Chicago. By 1920, the elder Vanderlip had come a long way, and was one one of the foremost bankers in America. Without his influence, it is doubtful that the syndicate could have ever become a reality.

With the backing of some of America’s foremost businessmen and the world-famous Vanderlip name, Washington was soon in the middle of negotiations with high ranking members of the Communist government, including personal meetings with Lenin and Trotsky. In a move that stunned Vanderlip, Lenin rejected the initial proposal of granting a twenty year, limited economic-concession for mining and oil drilling on the eastern and southern coast of the Kamchatka peninsula proper. He instead proposed a complete territorial concession for all Siberian land east of the 160th meridian, for a duration of sixty years. While the territory was to remain Russian, its sovereignty could be exercised by the United States - Soviet laws would not apply, and American military bases could be established. Labor could be brought in as seen fit. The syndicate could exploit all resources of the region’s land and waters, be they mineral or natural. The rights of this concession would be guaranteed.

In exchange, the syndicate would have to make fifteen million dollars of credit available to the Soviet government. The United States would need to recognize the legitimacy of the new Communist regime. Russia could purchase ten-percent of all extracted resources at market prices, as well as any stocks that could not be sold. The syndicate must develop local infrastructure, industry, and provide basic services the populace. A joint training program had to be established, through which a number of select Soviet specialists would work along-side syndicate professionals in order to learn technical and industrial skills. Finally, once the sixty year concession was over, all facilities and stocks would be transferred free of charge to the Soviet government. In the event that the concession failed, an arbitrator would determine the appropriate obligations or compensation required by both sides, derived from liquidation of the concession’s facilities and stockpiles.

Negotiations would continue into the winter of 1920. W. G. Harding would win the American presidential election but failed to agree to recognize the Soviet government. An additional role for the syndicate regarding Soviet-American imports was discussed, and then dismissed for the time being. However, by early December, a final consensus had been reached - lack of American recognition notwithstanding, the concession agreement was signed. A triumphant Vanderlip set sail for London in January, needing only to gain the approval of the syndicate backers and the United States government.

However, while Vanderlip may have been a persuasive man, his skill as a diplomat was lacking. He had become infatuated with Lenin, and came to trust him to a degree that was unwise. In hindsight, it appears that Lenin, a skilled statesman, took advantage of the opportunities newly open by Vanderlip’s proposal. While with the start of the New Economic Policy in March of 1920, there were several attempts at creating trade concessions in cooperation with foreign companies in order to develop Soviet industry, and the Communist government was in dire need of hard currency, a complete territorial concession of this sort was explained only as a matter of foreign policy. Japan loomed over Soviet affairs. The Khabarovsk Provisional Government, with Japanese support, was still holding a vast swath of land in the Far East. With the bulk of the Red Army occupied in the west and south, it was feared that the KPG would prove all but impossible to remove within the foreseeable future. However, it was hoped that with the proper tools, a wedge could be firmly driven between Japan, the United States, and Great Britain. Perhaps, a war might even be started, which would redirect Japanese attention away from the Russian Far East. And in due course, the inevitable global revolutionary movement would see the expulsion of the capitalists from Kamchatka, and its return to Russian hands. Unfortunately, Vanderlip, America, and Japan would blindly walk right into the trap Lenin had laid.

***

Vanderlip’s stopover in London would see the first political damage from the Kamchatka concession. Britain had held a large number of concessions in Siberia prior to the revolution. With Vanderlip’s triumphant announcement, many British businessmen and politicians feared that their old concessions were not merely to have been confiscated, but turned over to the Americans. Furthermore, the apparent rejection by the Bolsheviks of the British in favor of the Americans in granting new concessions stung bitterly. An oblivious Vanderlip embarked once more, this time heading for New York City.

Upon his arrival, a meeting between the syndicate members was called for. Immediately, trouble arose - several members of the original group had withdrawn. And of those who remained, several had only agreed on their interest in the concession during the planning stages without pledging any funds, and had second thoughts and were also considering to leave. The following weeks almost saw the collapse of the syndicate, but heavy amounts of campaigning by both Vanderlips convinced the existing members to stay, and new members were brought in. The most prominent of these was Robert Dollar, the California timber and shipping magnate. He had already been contacted by Washington, and rejected the offer as being an worthless scheme that wouldn't go anywhere in Moscow, but the apparent success of the negotiations was enough to sway him into joining. The Kamchatka Development Corporation was formed to oversee the work to be done in Siberia. Washington Vanderlip was to serve as field-director.

It was now a matter of receiving government approval and support. Once more, the vagaries of chance would work in their favor. Their timing could not have been better - with the recent Presidential election, the administration of the country was in a state of transition. No truly uniform or informed policy decisions were capable of being made, and the syndicate had a strong opening - member Edward Dahoney was a close friend of the man Harding had selected to serve as a Secretary of the Interior, Albert Fall. With this, in the weeks leading up to the inauguration, Dahoney and both Vanderlips argued strongly about the benefits of an American Kamataka. The vast mineral wealth of the land would become available to the United States; it would improve the chances of gaining additional concession in Siberia in the future; in the event of the outbreak of war with Japan, naval bases there could serve to intercept a Japanese fleet sailing east. Most importantly, Washington argued that Lenin had implied that if this concession went through, there was a possibility of Russia resuming trade with the US. “Three billion dollars a year awaits us” pronounced Vanderlip, and while his estimates of the value were considered to be optimistic, with the nation mired in the depths of a post-war depression, any possibility of creating increased demand for American goods was worth a chance. On March sixth, two days after taking office, President Harding approved the Kamchatka lease.

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San Fransisco Chronicle article, circa March 1921

London, still fuming over the apparent spurning, received word from diplomatic contacts in Russia that there was a chance that certain concessions in Siberia and central Asia might be made available to British firms if the Kamtchatka concession deal went through. Pressure was placed on Japan to withdraw her occupation troops from the region covered by the agreement. Perhaps in any other situation, the Japanese never would have halted their occupation of Kamtchatka. However, circumstances were conspiring against that nation - an Imperial Conference of the British Empire would soon start, and it was becoming clear to Japanese Prime Minister Takashi that there was a very real possibility of the Anglo-Japanese Alliance being abandoned. Desperately trying to gain good-will from the British, Takashi ordered the removal of the Japanese soldiers from Kamtchatka. It was all for naught. No vast British concessions were ever granted by the Soviets, and the Anglo-Japanese Alliance was broken later that year. A sense of anger at both the British and Americans would grow over the following years. The Kamchatka concession stands alongside the end of the Anglo-Japanese Alliance and the Washington Naval Treaty as an underlying cause of the Second World War. In May, 1921, the last Japanese troops in north-eastern Siberia boarded the cruiser Akashi. As they set sail out of Petropavlovsk, little could they have known that in twenty years, the banner of the Japanese Empire would fly once more over that harbor.



Author's notes: Well, welcome to the start of a timeline dedicated to the state that never was. The fiftieth state of Beringia (a combination of Alaska and parts of eastern Siberia) was something thatwormed its way into my head a few months back when I learned about the fact that Russia was open to the possibility of selling a broad concession on eastern Siberia during 1920 to the US. That deal never went anywhere historically, and the more research I did, the more apparent it became that it didn't have a real chance of ever getting anywhere. Still, what if?

I finally decided on a small, early POD, as well as a few more important ones during the Russian Civil War. Tweaks that could have modified the situation in 1920 when Washington Vanderlip journeyed to Moscow to the point where a deal might have been a possibility. Technically, the originating POD of this story is in the early 1880s, with both Vanderlips meeting far earlier than they did OTL, but there are a few other things you might notice as being a bit off compared to how things stood in 1920 historically.

This is my first timeline attempt, so opinions, advice, criticisms and such are desired.
 
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Map of the Kamchatka Concession, circa 1921

For the Tsars, the name Kamchatka was synonymous with lawlessness. This rough land had acquired a reputation for disorder even in the best of times, and the Russian Revolution had not been kind. Prior to the start of World War One, the Ispravnik (sheriff) of Petropavlovsk commanded of force of just two men with which to enforce the law across a district in excess of 150,000 square miles. The governor of the district, Nikolay Monomakhov, also had a small force of Cossack cavalry at his disposal, but by 1920 most of this force, upset by lack of pay, had either abandoned the district to fight with Admiral Kolchak to the West, or had become bandits, preying on small towns and native villages. The disruption of foreign trade in the wake of the revolution had also wrought havoc in the import-reliant peninsula - in 1919, a British observer noted that “...in this barren peninsula, not so much as a single sack of flour or pound of sugar can be secured.”

The arrival of the Imperial Japanese Army in 1920 had come as a shock in Petropavlovsk, but there was at least hope that this would mark a return to what passed for order in Kamchatka. However, the Japanese soldiers would quickly demonstrate a degree of brutality unknown even to a populace used to having soldiers maintain order. They would go out of their way to antagonize or abuse the citizens of Petropavlovsk - many a native would find him or herself on the end of a Japanese rifle butt. Furthermore, despite the hopes of putting an end to the bandits plaguing the countryside, the soldiers were content with occupying the port of Petropavlovsk and several strategic towns on the coast where Japanese fishing interests were located. Anger and resentment towards the Japanese, always present in the Russian Far East, was at the boiling point.

***​

This was the situation in Kamchatka on May 12, 1921 when Washington Vanderlip arrived in Petropavlovsk. Sailing aboard the SS Northwestern, the newly appointed field-director of the KDC had orders to “...resume what works had already been underway, begin new geological surveys, and oversee the maintenance of civil and orderly administration in the Kamchatka Concession.” With him was a skeleton staff including representatives of the syndicate’s member companies, and a company of marines under the command of Captain George Van Orden. An official transfer ceremony was conducted outside the Old Government House between detachments of Japanese and American soldiers, with Vanderlip serving as the American commissioner.

The early government of Kamchatka was a strange beast, an uneasy balance between the private-interests of the KDC, the US government, and the technical sovereignty of the Soviet Union. The closest point of comparison was the Panama Canal Zone, which was controlled by a company, and whose territory still legally belonged to Panama. However, there were some key differences - the Panama Canal Corporation was fully owned by the United States government, and as such, the governor of the Zone was also appointed president of the PCC. By comparison, in Kamchatka, the privately owned KDC was the legal authority. Furthermore, since the American government did not at that time recognize the Soviet government, it could not organize a territory. As a way to sidestep this, an unofficial agreement had been made to have the KDCs current field-director appointed as a US commissioner by the President.

An engineer first, and administrator second, Vanderlip would soon leave most day-to-day duties of civil administration to the native Okruzhnye Sovetniki, or District Advisory. The District Advisory was composed of prominent local merchants and officials in Petropavlovsk and the surrounding region, who were to serve as representatives of their communities to the American administration. It would serve as the Kamchatkan forerunner of the Beringia State Assembly. The Advisory was headed by Nikolay Monomakhov, who had been appointed governor of Kamchatka by the Tsar in 1907, and had served both the Kolchak and Japanese governments in the aftermath of the Revolution.

***
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US Marshals Service badge

By fall, 1921, significant progress had been made. A degree of order and stability not seen since the start of the Great War had been achieved in southern Kamchatka - American troops were stationed at many of the small towns dotting Kamchatka, and had began to patrol the countryside to root out bandits and deserters. A magistrates court, based on Alaskan legal code, had been established. More serious cases were tried by the “water lane” circuit of the Alaska District Court, located aboard the Coast Guard cutter Bear. One US Marshal and eleven Deputy Marshals, officially considered to be serving in the newly created Fifth Division of the Alaska Territory, served as law enforcement.

Initial survey work had been completed at promising areas, and plans were being prepared for an aggressive campaign of geological surveys and initial test drillings to start the following spring once warmer weather returned. Even as winter approached, the groundwork continued to be laid for the next seasons work. Harbor improvements, vital for bringing in the syndicate’s heavy equipment, were underway - Kamchatkan laborers were contracted to work for the KDC come summer.

***
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Above: Rail line under construction outside Saratoga, circa 1922 Below: Bridge under construction across Saychek River, circa 1923
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1922 would have a promising start. Warm weather came early, and work resumed in early May. This would be the first great year of construction - a seemingly never-ending stream of equipment was offloaded in Petropavlovsk. Bulldozers, steam shovels, even a small disassembled cement plant - more modern machinery arrived in Kamchatka in those six months than it had seen in its entirety history. It was said that the harbor hadn’t seen so many ships since the British and French had laid siege to it in the Crimean War.

With shovel and tractor, timber and concrete, the men of the KDC set about trying to tame the wilds of Kamchatka. Hundreds of miles of corduroy roads were laid down with the intent of linking the major towns of the region, allowing greater access through the peninsula by syndicate geologists and engineers. A telephone system, the first the area had ever seen, was set up to more easily coordinate workers spread across hundreds of miles.

In October, field operations halted for the season, and planning for next year began. The past season’s geological reports had been underwhelming - several locations that had been considered possible sites for future development were revealed to be worthless or uneconomical. The failure of the KDC to quickly find the next Yukon or Spindletop that Washington had promised would begin to create concern among several members of the syndicate. Vanderlip waved off these concerns, convinced that the big strike was just around the corner. All that was necessary was to expand the search.

***

If 1922 was marked by concern, the following year would see it increasingly replaced by panic. A labor force already numbering in excess of 6,000 men was set to work increasingly far afield. Further survey-teams were sent out to points in the north. Several of the small, marginal mining operations that had been worked on Kamchatka were brought back into service with modern machinery. They would all later prove to be uneconomical, but the increasingly harried field-director was desperate to show that production was starting. Vanderlip himself would become obsessed with finding significant gold deposits along the Gulf of Anadyr, far in the eastern reaches of Kamchatka. Several small, marginal placers had been worked there in previous years, almost all by hand, and he became convinced that with all the expertise and modern machinery of the KDC, the true bounty of Anadyr would surface. Back in New York, discontent over the field-management of the KDC would erupt into a war for control of the KDC between those members of the Syndicate who still trusted Washington, led by Frank Vanderlip, and others who feared that a very significant investment was at risk of failing, who had Robert Dollar as their foremost member. Washington, who returned to New York to report to the syndicate, made an impassioned plea for more time, saying that mining had just started on the peninsula proper, and that the outlook in Anadyr was good. While his arguments were unconvincing to many, Washington still had sufficient allies to prevent his dismissal.

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Kamchatkan gold miners, circa 1909. Only four mines in operation in Kamchatka prior to the KDC's arrival used modern mining equipment of any sort - almost all work had been done by hand.

It would turn out to be a short reprieve. 1924 would see the collapse of the original syndicate, and the downfall of Washington Vanderlip. Robert Dollar, whose trust in Vanderlip was marginal, sent his son Robert Stanley to investigate the situation in Kamchatka for himself. Stanley, who had managed his father’s timber operations in the Sierra Nevadas and Alaska, would return in August with a damning four-hundred page report on operations being conducted in Siberia. In an emergency meeting of the syndicate, Stanley summarized his findings. He had found an operation that had been poorly directed from the start - roads, constructed before geological surveys were complete, lay abandoned, rendered useless as new borings found nothing of value at their intended destination. Narrow-gauge railway lines existed to service minor strip-mines whose current and future output simply didn’t merit such a heavy investment. The field-director himself would prove to be elusive, having taken to the field to oversee the Anadyr surveying work personally. For the better part of an entire work-season, the KDC had been operating without any real central leadership - bureau heads had been left to try and work out what to do from incomplete and often cryptic letters sent by Vanderlip weekly from his base-camp. Even on the civil-side, which had been touted as a success, lack of economy was ordinary. The KDC has resumed the Tsar’s practice of providing subsidized grain to the citizens of the region “despite the fact that the lands in the south of the peninsula are fertile enough to grow buckwheat and barley, as is the practice in Alaska. Not even a slight effort has been made to convince the residents of the concession to attempt this. Even if we were to supply seed and tools, a marked reduction in civil-expenditures could be obtained.” The export of furs, a valuable industry in the region, had been ignored, with foreign companies allowed to operate on Kamchatka without providing any fees to the syndicate for the privilege. In fact, virtually all of the natural resources of the province that existed above ground had been ignored, and in the past two years, increasingly the search for oil or gold and silver deposits had seen promising reports of possible finds of coal or nickel passed over. Japanese fishing vessels and canneries had been allowed to continue to operate, as per request of the State Department, but the leasing agreements that had been made were significantly below the value of those that had been agreed to by the Russian government in years past. Timber was of particular concern to Stanley - no efforts had been made to develop the logging industry in Kamchatka beyond that necessary for the needs of syndicate construction projects. Finishing, he would proclaim that “Mr. Vanderlip may fancy himself a Midas, but Tantalus is a title more befitting him.”

The syndicate members voted in favor of having Vanderlip recalled and removed as field-director of the Kamchatka Development Corp. Upon receiving word at his encampment in Anadyr, Vanderlip, enraged at both Dollars, declared his intent to travel back to New York to defend himself from the accusations Stanley had made. It was not to be - on the journey back to Petropavlovsk, Vanderlip took ill. The 57-year old engineer had been healthy for his age, but the time spent in the harsh wilderness of Kamchatka had taken its toll - Washington Baker Vanderlip died from complications of pneumonia at the Petropavlovsk infirmary on September 18, 1924. Survived by a wife and daughter, he was laid to rest in his hometown of Fairbanks, Alaska.

***
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Washington Vanderlip with a native family, shortly before his death.

Shortly after Washington’s death, Frank Vanderlip resigned as President of National City Bank - James A. Stillman, who had tried to seize control of the company in 1919 and 1921, was able to use the failure of the Kamchatkan venture to force the issue. Over the winter of 1924-25, more than half of the syndicate members withdrew or otherwise minimized their investments in the KDC. In the spring, Robert Dollar, who had been elected the new President of the KDC, selected his son Stanley to be the new field-director.

1925 was a poor year for the KDC. It marked the withdrawal of many prominent syndicate members, such as Standard Oil of California, and a dramatic reduction of National City Bank’s obligations to the company. Robert Stanley spent most of the year engaged in the corporate-equivalent of damage control, trying to unsnare the assets of the KDC from a web of poor projects. The number of employees, particularly those of costly imported American workers, was cut dramatically. A majority of construction projects were cancelled, and equipment withdrawn to Petropavlovsk.

By the following year, Stanley had managed to stabilize the now much-smaller KDC. Expenditures had been drastically reduced, and a proper revenue stream was now being received from the booming fur trade. Leasing contracts for Japanese use of the Kamchatkan fisheries had been renegotiated, this time more to the syndicate’s favor. While the KDC had fallen deeply into debt, there was at least a promise of modest returns in the coming years.

***​
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Above: Utkholok coal mine, circa 1938 Below: Logging operation outside Saratoga, date unknown
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In the period between 1926 and 1932, the syndicate would fluctuate rapidly. New investors would come and go, as would attempts to expand the KDC once more. The lumber industry would come in 1927, and Robert Stanley’s predictions of profitability proved accurate. Cautious of past failures, more modest attempts were made to start working mineral deposits. New surveys were started, and under the administration of field-director Paul Pavel Goudkoff, mining was started at Utkholok. While modest in size, this bituminous coal mine was the first profitable operation of its type in Kamchatka and was taken as a sign of things to come. However, the Stock Market Crash of 1929, and the onset of the Great Depression would crush hope of a revival. The KDC would struggle to survive, barely staying in operation.

A further blow would come in 1933. The newly elected Roosevelt administration recognized the Soviet Union in December - as part of the diplomatic agreement between the two countries, the vague legal status of the Kamchatka lease was resolved. The United States government would take control of the civil administration of Kamchatka, and organize it as an American territory. Thus ended the twelve-year rule of the syndicate in Siberia. Paul Goudkoff was to be the last of the so called “corporate-governors”. While the KDC would remain in business for the remainder of the Interwar period, it would never regain the level of power and authority it once had. Bankrupted during the Second World War, its interests were purchased by the Federal government in 1945, with the company officially disbanding the following year.

***

The 1930s were a tumultuous period for Kamchatka. The District of Kamchatka, the first federally-organized administration of the unincorporated territory, would be short lived. The governor appointed by Roosevelt, Harry Woodring, a Kansas politician, would prove to be a source of friction with the populace of the territory. The elimination of the District Advisory, and reorganization of other locally run civil administration also created great consternation. By now used to having de facto self government, if only due to a sort of benign neglect resulting from the way that the KDC had operated, there was tremendous outcry from the people of Kamchatka, both native and migrant alike. A delegation of prominent Kamchatkans, headed by Alaskan emigre Daniel Sutherland, would travel to Washington, D. C. to petition Congress for the reestablishment of the Advisory and some form of self-governance. Their arguments were sufficient to convince Congress into passing the Organic Act of 1935, which established limited self-government in Kamchatka, and provided for a non-voting delegate to Congress. Some members of the delegation were disappointed - the territory was to remain under the jurisdiction of the Department of the Navy, and any hopes of having American citizenship granted to the pre-existing population of the region were dashed. However, the Act would be a major step towards statehood. In the harrowing years to come, the people of Kamchatka would prove that the faith put in them had not been misguided.



Author's notes: Well, the second segment is up. Next section will be the final one before the outbreak of WW2, and will focus on the population of Kamchatka, the military's history there during the Interwar period, and the effect that the concesssion is having on the Soviet Union and US.
 
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Good start.

The U.S. vs. the Japanese in the Far East...that sounds interesting.

Can't wait for the next update.
 
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Methinks Japan will be invaded from the north in alt-WW2.

I'm not sure about that. Suddenly, there is no Southern strategy anymore since war against the US means war in Beringia, the Pacific and the Philippines. And would the Soviets just sit and wait whilte Japan controls areas South of Soviet siberia and North of it? ITTL, I find it more likely that Japan restricts itself or goes for the Soviets.
 
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I'm not sure about that. Suddenly, there is no Southern strategy anymore since war against the US means war in Beringia, the Pacific and the Philippines. And would the Soviets just sit and wait whilte Japan controls areas South of Soviet siberia and North of it? ITTL, I find it more likely that Japan restricts itself or goes for the Soviets.

Japan's policy would depend on how well things go in China (heck, this could butterfly parts of Japan's China strategy). If things go as OTL in China, Japan would be in serious trouble. With China not yet pacified the resources for any campaign against the USSR would simply not exist, and what Japan need is the resources of the European colonies in Asia, but that again would mean war with the US, and in the long run with the USSR.
 
Wow! Outstanding. I always like TLs written as books or academic papers from within the ATL. Not only do they lend a sense of reality to what is being discussed, but a well-written one tends to hide logical inconsistencies (the kind of logical inconsistencies that occur in real history).

I'd make the paper a college term paper, though. It seems awfully well-done to be by somebody in the 8th grade.

Great use of pictures, also.
 
Wow! Outstanding. I always like TLs written as books or academic papers from within the ATL. Not only do they lend a sense of reality to what is being discussed, but a well-written one tends to hide logical inconsistencies (the kind of logical inconsistencies that occur in real history).

I'd make the paper a college term paper, though. It seems awfully well-done to be by somebody in the 8th grade.

Great use of pictures, also.

Zoomar,
The 8th grader may have had help from an older relative. :)
 
I wonder if Japan will join with Germany in invading the Soviet Union and will also invade American Kamchatka.

This could make for an interesting World War II, given the hints in the first post.

Can't wait for the next update.
 
Nicely done. However, I have a hard time, given such books as 'How the States Got Their Shapes', believing that American Kamchatka would not be separated from Alaska and governed from a more localized capital.
 
Nicely done. However, I have a hard time, given such books as 'How the States Got Their Shapes', believing that American Kamchatka would not be separated from Alaska and governed from a more localized capital.

Hmm, if American Kamchatka is not separated from Alaska, are Kamchatka and Alaska separate territories in this world's version of the Risk game?
 
Nicely done. However, I have a hard time, given such books as 'How the States Got Their Shapes', believing that American Kamchatka would not be separated from Alaska and governed from a more localized capital.
I have to agree with this. The Kamchatkan territory is almost 2/3 the size of Alaska IOTL, and at its most distant would be about 1600 miles from the presumptive capitol at Nome. Sure, small population, but those are the borders with Russia, and they'd be as far from the center of governance as Houston is from New York. I'd really second the idea of admitting it as its own state.
 
Wow. Thank you very much for all the comments and feedback. This is my first timeline here, despite joining several years ago, so this sort of feedback is very useful. I'll try and start addressing a few things.

I'd make the paper a college term paper, though. It seems awfully well-done to be by somebody in the 8th grade.

Yeah, I was a bit worried about that. When I was originally coming up with this, my idea was to do a "commando" timeline, something to do that might actually see the light of day. Something fast, around 8,000 words long, done as an in-universe state history report. It's grown somewhat since then, and is probably a bit past what you might see at that grade. I might consider kicking it up a grade or two - I never went to college, so I wasn't exactly sure whether what I was writing would match the standards of a term paper.

Nicely done. However, I have a hard time, given such books as 'How the States Got Their Shapes', believing that American Kamchatka would not be separated from Alaska and governed from a more localized capital.

I have to agree with this. The Kamchatkan territory is almost 2/3 the size of Alaska IOTL, and at its most distant would be about 1600 miles from the presumptive capitol at Nome. Sure, small population, but those are the borders with Russia, and they'd be as far from the center of governance as Houston is from New York. I'd really second the idea of admitting it as its own state.

I can certainly understand the reservations. Kamchatka (which, in this timeline includes quite a bit more than just the peninsula) and Alaska are each very large expanses of land, separated by the Bering Straits, with both having separate centers of population, Anchorage and Petropavlovsk. Under ordinary circumstances, they would become two separate states. But I became a bit enamored with the idea of them being united - two parts of one grand state, split by the Bering Sea. A very unique state in many regards - transcontinental, detached from the other states, edging on the Arctic.

The territories aren't going to be merged solely because they're both distant and cold! 1950s Washington politics, early Cold War events, and mutual ties will be the ultimate cause. I hope that in due course you will be satisfied with the explanations for Beringia that arises in-story.
 
Maybe the states are united because otherwise the state of Kamchatka would be majority Slavic/Orthodox with a significant Japanese minority, instead of Yankee/Protestant. So, basically to give 'Americans' more influence. Dunno why they wouldn't just make it a territory like Puerto Rico though.
 
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