The Corporate Whale: ANCSA, The First 10 Years Program
Program 8 of 10
McPherson, Karen Michel 1982
5...4...3...2...1. LADIES AND GENTLEMEN OF THE AFN, THIS IS THE
WHITE HOUSE IN WASHINGTON CALLING. I PRESENT THE PRESIDENT OF THE
UNITED STATES...
[President Nixon] I APPRECIATE THIS OPPORTUNITY TO EXTEND MY GREETINGS
AND BEST WISHES TO THE CONVENTION OF THE ALASKA FEDERATION OF NATIVES.
I WANT YOU TO BE AMONG THE FIRST TO KNOW THAT I HAVE JUST SIGNED
THE ALASKA NATIVE CLAIMS SETTLEMENT ACT. THIS IS A MILESTONE IN
ALASKA'S HISTORY.
[Narrator] THE CORPORATE WHALE: ANCSA, THE FIRST 10 YEARS.
[] The Reverend Merculieff from St. George Island...
This land of Alaska, which thou gave to our ancestors, who have
come and gone before us, is now being handed to us a second time,
by the Act of the United States Congress and our untiring efforts.
A second chance is given to us by thee to be the new custodians
and caretakers.
MORE THAN 200 VILLAGES AND GROUPS WERE ELIGIBLE TO RECEIVE BENEFITS
UNDER THE ALASKA NATIVE CLAIMS SETTLEMENT ACT, ANCSA, THE NEARLY
ONE BILLION DOLLARS AND 44 MILLION ACRES GIVEN IN EXCHANGE FOR
EXTINGUISHING ABORIGINAL RIGHTS. TO MANAGE THOSE BENEFITS, CONGRESS
MANDATED THE CREATION OF VILLAGE CORPORATIONS, EITHER NOT FOR PROFIT
OR PROFIT MAKING ENTITIES. ALL CHOSE THE BUSINESS OPTION AND SET
UP NEW CORPORATIONS IN ADDITION TO EXISTING TRADITIONAL AND POLITICAL
COUNCILS.
SEVEN VILLAGES CHOSE TO REMAIN RESERVATIONS: GAMBELL, SAVOONGA,
KLUKWAN, ELIM, ARCTIC VILLAGE, AND VENETIE. UNLIKE VILLAGE CORPORATIONS,
RESERVES RECEIVE BOTH SURFACE AND SUBSURFACE ENTITLEMENTS, DO NOT
SHARE IN THE MONEY DISTRIBUTION UNDER ANCSA, AND ARE INDEPENDENT
OF REGIONAL CORPORATIONS. VILLAGE SHAREHOLDERS ARE ALSO REGIONAL
CORPORATION SHAREHOLDERS WITH 100 SHARES OF STOCK IN EACH.
MANY OF THE PEOPLE WORKING FOR A CLAIMS SETTLEMENT WANTED TO CENTER
THE BENEFITS ON THE VILLAGES WHOSE PEOPLE USED AND OCCUPIED THE
LAND, AND DID NOT WISH TO CREATE REGIONAL CORPORATIONS AS OVERSEERS.
EMIL NOTTI, THE FIRST PRESIDENT OF ALASKA FEDERATION OF NATIVES,
WAS AN ADVOCATE OF THAT POSITION...
Our original proposal called for 95% of the money to go to the
villages, because it was the villages that was ..uh.. losing the
land. People living off the land were being impacted the most.
IN THIS PROGRAM, THE EIGHTH IN A TEN PART SERIES, THE CORPORATE
WHALE, VILLAGE AND REGIONAL CORPORATION LEADERS WILL DISCUSS VILLAGE
CENTERED APPROACHES TO MANAGING ANCSA'S LAND AND MONEY ENTITLEMENTS,
AND IMPACT.
ØDividin' the maktak is they
way it's always been
Dividin' the maktak between family and friends
We're sailin' toward to future, we're anchored in the past
Rich in our tradition, our ways will surely last Ø
WITH A SMALL POPULATION BASE TO DRAW UPON FOR LEADERSHIP, VILLAGE
CORPORATIONS WERE FACED WITH THE TASK OF ORGANIZING INTO BUSINESS
ENTITIES AND SELECTING LAND ENTITLEMENTS WITHIN THREE YEARS AFTER
ANCSA PASSAGE. VILLAGES WERE GRANTED THE LAND SURFACE ONLY WITH
REGIONAL CORPORATIONS RECEIVING THE SUBSURFACE ENTITLEMENT. THE
ONLY INSTANCE IN WHICH VILLAGES WERE ON TOP OF REGIONS, FOR THE
VILLAGE CORPORATIONS WERE UNDER THEIR [AGENT] FOR A NUMBER OF YEARS.
THE ACT STATED THAT FOR FIVE YEARS REGIONAL CORPORATIONS WERE
TO APPROVE VILLAGE CORPORATIONS' ARTICLES OF INCORPORATION AND
AMENDMENTS TO THEM; TO REVIEW AND APPROVE ANNUAL BUDGETS. AND FOR
TEN YEARS AFTER THE DATE OF ENACTMENT, UNTIL DECEMBER 18, 1981,
REGIONAL CORPORATIONS ADVISED VILLAGE CORPORATIONS ON LAND ACTION,
THOUGH DESIRE FOR TRADITIONAL USE ON THE SURFACE COULD CONFLICT
WITH HOPE FOR REVENUES FROM SUBSURFACE RESOURCE DEVELOPMENT. IT
WAS A RELATIONSHIP, THAT WELL HELPFUL FOR SOME FLEDGLING VILLAGE
CORPORATIONS, IMPEDED THE IDENTITY OF OTHERS AND PROMOTED THE IMAGE
OF REGIONAL CORPORATIONS AS THE INSTRUMENT OF LAND CLAIMS IMPLEMENTATION.
THE STATEWIDE ANCSA VILLAGE CORPORATION, [SAVA], IS NOW WORKING
TO ADVOCATE ON BEHALF OF VILLAGE CORPORATIONS. ROSEMARIE MAHER
IS A CHARTER MEMBER OF [SAVA], SERVES ON THE DOYON BOARD, AND IS
PRESIDENT OF NORTHWAY NATIVE...
We've been lumped in as Doyon Regional Corporation villages, and
we don't have our own identity. But yet we're operating as two
separate corporations with essentially two different ..uh.. ideas
on...which should be because Doyon is..is mostly a ..uh.. resource
minded ..uh.. corporation. Where the village corporation can't
take that attitude, because they don't have the resources. They
have..they only have the surface rights, which would may be timber.
Uh..but other than that, I don't see that they have any..anything
common with..with Doyon's goals and objectives. Uh..so there's
a definite difference in this..this organization.
DIFFERENCES THAT ARE PERHAPS MOST ACUTE IN BARROW, HEADQUARTERS
FOR THE ARCTIC SLOPE REGIONAL CORPORATION. ASRC'S TREASURER OLIVER
LEAVITT...
..and have not had that closer relationship with our own local
village corporation in Barrow. And it's just the mainly difference
in philosophy in the type of ..uh.. type of work that we do.
DALE STOTTS, CORPORATE MANAGER FOR THE UKPEAGVIK
IÑUPIAQ
CORPORATION, THE BARROW VILLAGE CORPORATION...
...formidable ..uh.. corporate strength that is in the region,
is one of a colonialistic nature. So somewhere along the line in
the growth of the region..regional corporation and their activities,
they have..they have limited...they have disadvantaged the village
level of growth. Uh..largely because they are more impressed by
the other outside interests in the regional domain. That is development
of resource, the oil and gas resources.
WITHOUT THE LAND'S SUBSURFACE TO DRAW ON, VILLAGE CORPORATIONS
HAVE PURCHASED OR STARTED GENERAL STORES, HARDWARE AND BUILDING
SUPPLY STORES, BUILT OFFICE BUILDINGS BOTH IN THE VILLAGE AND IN
ANCHORAGE, OPERATED SAWMILLS, INITIATED COLD STORAGE FACILITIES,
STARTED CONSTRUCTION COMPANIES AND FUEL DEPOTS, AND IN SOME CASES
JOINED WITH REGIONAL CORPORATIONS AND VENTURES RELATED TO THE OIL
INDUSTRY.
A NUMBER OF VILLAGES HAVE MERGED WITH EACH OTHER TO MAXIMIZE THEIR
INVESTMENT POTENTIAL AND MINIMIZE ADMINISTRATIVE COSTS. AND IN
ONE REGION, NANA, THE NORTHWEST ALASKA NATIVE ASSOCIATION, 10 OF
THE 11 VILLAGE CORPORATIONS IN THE REGION FOUND IT ADVANTAGEOUS
TO MERGE WITH THE REGIONAL CORPORATION. JOHN SCHAEFFER IS NANA'S
PRESIDENT...
We took what we thought was a...was a ..uh.. a Western system
that wasn't going to work very well. And we ..uh..made it more
Eskimo. We were closer together, and we worked closer together
for the same goals. So I don't think ..uh.. if you..if you consider
NANA just a business corporation that gobbled up other corporations
in order to get more land, uh..I suppose ..uh.. you can look at
it that way, but that's not the way we view NANA.
KOTZEBUE IS THE LARGEST VILLAGE IN THE NANA
REGION AND IS THE ONLY ONE OF THE AREA'S VILLAGE CORPORATIONS
TO WITHHOLD FROM THE
MERGER. LEGISLATOR AL ADAMS IS THE PRESIDENT OF THE KIKIKTAGRUK
IÑUPIAT CORPORATION, KIC...
We feel that as..as a large village corporation, that we can manage
our assets here, and then control...have control here in Kotzebue.
And we can do more good for the people here in Kotzebue than if
we did merge.
But I'm happy to say that I'm glad to see the other smaller villages
have merged with NANA, because I think in the long run, it will
help be a beneficial financially to their village corporation and
its shareholders.
IN ITS FIRST TEN YEARS, KIC HAS DONE WELL FOR ITS 2,021 SHAREHOLDERS.
We have our annual report which I'll hand to you for your copy.
And that's the '80, and ..uh.. it'll show you some of the investments.
KIC'S BUILDINGS, CONSTRUCTION COMPANY, AND
STOCK, THEY'RE THE ONLY VILLAGE CORPORATION WITH STOCK IN THE
ALL-NATIVE CORPORATION
OWNED UNITED BANK ALASKA, YEILDED A PROFIT OF CLOSE TO $800,000
FOR 1981, AND ADAMS PREDICTS A MILLION DOLLAR PROFIT FOR NEXT YEAR.
THERE'S A MESSAGE FROM THE CHAIRMAN OF THE BOARD ON THE INSIDE
COVER OF THE 1980 ANNUAL REPORT. IT SAYS, IN PART, "IN THE
PAST, AS WARRIORS AND HUNTERS, WE DETERMINED OUR OWN DESTINY. ONCE
AGAIN, AS CORPORATE SHAREHOLDERS AND MANAGERS, WE HAVE BECOME THE
MASTERS OF OUR FUTURE."
Ø
My name is Glen Fredericks, and I'm the president of the Kuskowim
Corporation. Uh..villages that merged in ..uh.. the Kuskokwim area,
upper area from Kalskag all the way to ..uh.. Stony River. In 1977,
I believe it was that we merged into one, throwing everything in
one pot kind of, you know. And .uh.. [clears throat] we have our
main offices here in a..in ..uh.. Anchorage. Uh.. and ..uh.. we
take our..take care of our own funds. Uh.. we invest them ..uh..
in different banks in state..state of Alaska, also in Lower 48.
THE 10 VILLAGES IN THE MERGER OWN OFFICE AND APARTMENT BUILDINGS
IN ANIAK BUILT BY THE CORPORATION, A CLINIC IN KALSKAG ARE CONDUCTING
GRAVEL AND TIMBER STUDIES WITH HOPE OF DEVELOPING THOSE RESOURCES,
AND HAVE LAND HOLDINGS IN BUILDINGS IN ANCHORAGE. THE KUSKOKWIM
CORPORATION, WHICH IS PART OF THE CALISTA REGION, HAS A BRANCH
OFFICE IN ANIAK, BUT CONDUCTS MOST OF THE BUSINESS FROM THEIR ANTIQUE-FURNISHED
OFFICE IN DOWNTOWN ANCHORAGE...
...it's very hard to do business in a little village, you know.
THE BUSINESS CONDUCTED IN THE BIG CITY HAS BEEN PROFITABLE.
We haven't ..uh.. any other village haven't valued our land yet.
Really, it's very hard to come up with a ..uh.. value of land,
say Crooked Creek, you know. Because there's never been any sales
..and..and.. but our total assets is ..uh.. with the buildings
we own and everything. It's about $12 million.
DIVIDENDS WERE DISTRIBUTED FOR THE PAST TWO YEARS AND NET PROFITS
LAST YEAR WERE AROUND 3/4 OF A MILLION DOLLARS.
You don't hear too many village corporations making that kind
of a profit.
Ø
Tanana, Nenana, Stevens Village, Alatna, Allakaket, Hughes, and
Huslia...
THOSE SEVEN VILLAGES IN THE DOYON REGION IN INTERIOR ALASKA ARE
MEMBERS OF RIVER VILLAGES INCORPORATED. WALTER CARLO OF TANANA
IS THE CORPORATION'S PRESIDENT AND IS ALSO A MEMBER OF THE DOYON
LIMITED BOARD...
You might say we're just joint ventured as opposed to merge..merged
or consolidated into one organization. All the villages still have
control of their own lands, and that's ..was the whole idea behind
this organization. Organizations also..uh... not to put everything
in the same pot.
THE GROUP HAD ITS FIRST ORGANIZATIONAL MEETING
SEVEN YEARS AGO AND DECIDED NOT TO MERGE, BUT TO RETAIN INDIVIDUAL
VILLAGE CONTROL
OVER LANDS AND INTERNAL AFFAIRS. IN THE DOYON REGION, THERE ARE,
HOWEVER, THREE MERGED CORPORATIONS: GANA-A' YOO, MEANING "FRIENDS
TOGETHER" IN KOYUKON ATHABASCAN, A MERGER OF GALENA, KOYUKUK,
KALTAG, AND NULATO; AND MTNT, THE VILLAGES OF MCGRATH, TELIDA,
NICHOLAI, AND TAKOTNA; AND ANOTHER MERGER OF THE KOYUKUK RIVER
VILLAGES OF ALATNA, ALLAKAKET, HUGHES, AND HUSLIA; ALL MEMBERS
OF RIVER VILLAGES INCORPORATED AS WELL. TO JOIN RIVER VILLAGES
REQUIRES A MINIMUM $100,000 INVESTMENT BASED ON $1000 PER SHAREHOLDER
FOR A SMALL VILLAGE CORPORATION OF 100 SHAREHOLDERS. THE FEE DOES
NOT INCREASE FOR LARGER VILLAGES, AND THERE IS NO CEILING ON THE
AMOUNT THAT MAY BE INVESTED IN THE HOPES OF GETTING LARGER RETURNS.
So far we've got..looked at ..uh.. river transportation, construction,
..uh.. communications, and, like everybody else, we wanted to ..uh..
maybe excavating work. We know that there would be a lot of work
out in the rural areas, and that's where that areas we'll be concentrating
on. We're looking at ..uh..uh.. services to the villages, they're
our number one priority, shareholder hire, and profit. You know
that the villages have half of the..half of the capital. So we
could ..uh.. pull it together somehow, and we could ..uh.. do some
great things ahead, I think.
YOU'VE BEEN LISTENING TO THE CORPORATE WHALE: ANCSA, THE FIRST
10 YEARS. THE EIGHTH PROGRAM IN A TEN PART SERIES WRITTEN AND PRODUCED
BY KAREN MICHEL MCPHERSON, WITH TECHNICAL ASSISTANCE FROM PHILLIP
KAKOWSKI (sp?). FUNDING WAS PROVIDED BY KUAC SPONSORS AND THE ALASKA
NATIVE HUMAN RESOURCE DEVELOPMENT PROGRAM OF THE COOPERATIVE EXTENSION
SERVICE OF THE UNIVERSITY OF ALASKA.
SPECIAL THANKS TO MUSICIANS HERBIE VENT, BUDDY TABOR, TED WESLEY
AND WILL ACKERMAN.
Part 1
"This 10 part series, The Corporate Whale, will listen to some of the events
leading to the Land Claims Settlement, the mechanisms that were employed to
manage the Act, government agencies, and Native corporations, hear how leaders
assess the first 10 years, and predictions for 1991."
Part 2
"Both restrictive provisions included in the Act, what the Alaska Native
Land Claims Settlement is, and how it divides up the land and the money will
be
discussed in this program, the second in a ten part series: The Corporate
Whale."
Part 3
"In this program, the third in a ten part series, The Corporate Whale, Native
leaders and others involved with the framing of the Land Claims Settlement
give some of their thoughts on the corporate concept and how well that mechanism
works for dividing the benefits of ANCSA: The Whale."
Part 4
"This program is the fourth in a ten part series, The Corporate Whale: ANCSA,
The First Ten Years. Agency representatives and Native corporation leaders
will give their perspectives on the land's aspect of the Land Claims Settlement."
Part 5
"In this program, the fifth in a ten part series, The Corporate Whale, leaders
of Sealaska and Cook Inlet Region, Inc., will profile their activities in
dividing the benefits of ANCSA into profits for shareholders."
Part 6
"In this program, the sixth in a ten part series, The Corporate Whale, leaders
from NANA, the Northwest Alaska Native Association region, and Calista Corporation
will profile their corporation's activities in managing ANCSA's benefit."
Part 7
"Both the Land Loss Formula and 7(i), the revenue sharing provision, were
intended to be equalizers in the Settlement providing resource revenues to regions
without rich lands and additional land to those without large populations.
This program, the seventh in a ten part series, The Corporate Whale, will
examine two regional corporations particularly affected by the provisions,
the Arctic Slope Regional Corporation in the north and Doyon Limited in the
interior."
Part 8
"In this program, the eighth in a ten part series, The Corporate Whale,
village and regional corporation leaders will discuss centered approaches to
managing
ANCSA's land and money entitlements, and impact."
Part 9
"This program, a ninth in a ten part series, The Corporate Whale, will examine
the role of the Alaska Federation of Natives and its efforts to survive and
continue to be a unifying body for the corporations who manage ANCSA's benefits."
Part 10
"In this program, the last in a ten part series, The Corporate Whale, leaders
involved in land claims implementation assess the bill that Barrow activist
Charlie Edwardsen, Jr., Etok, once referred to as 'a new harpoon.'"
Alaska Native Knowledge Network is responsible for the transcription of this
series. We would like to humbly apologize for any misspellings in advance.
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