State's oldest business celebrates 140 years of commerce: ACC/N C machinery revisit their shared history.

[ILLUSTRATION OMITTED]

No Alaska business holds a more storied place in state history than the Alaska Commercial Co. Seven days before the United States' $7.2 million purchase of Alaska became final, Hutchinson, Kohl and Co. of San Francisco purchased the Russian-American Co.'s interests in Alaska for $350,000 in gold.

The business begat of that 3 a.m. exchange on Oct. 11, 1867, would officially incorporate in California under the name Alaska Commercial Co. on Sept. 17, 1868.

"Our piece of American history makes us one of the most intriguing businesses in the United States," company President and Chief Operating Officer Rex Wilhelm stated in a press release celebrating the 140th anniversary of operations as Alaska Commercial Co.

But the company's history in Alaska stretches still further back to 1775, when Grigori Shelekhov began organizing commercial trips to Alaska for Russian fur merchants.

As things turned out, history records Shelekhov as a key figure in developing Alaska and the Alaska Commercial Co.

It was at the behest of Tsarina Catherine the Great that Shelekhov led an expedition in 1784 to Three Saints Bay on Kodiak Island where the first Russian colony in North America was founded. And it was his Shelekhov Co. that would eventually become known as the Russian-American Co.

His pleas also led to the establishment of the Russian Orthodox mission in Alaska in 1794, which the company financed after Catherine the Great awarded Shelekhov's Russian-American Co. sole control over trade and government in Alaska in 1799.

"You can't look at any chapter in Alaska history and not see AC's presence there," said David Chatyrbok, ACC's vice president of marketing. "We are very proud that we're still one of Alaska's top companies."

MORE THAN A RETAILER

If you live on Alaska's road system, you'll need a plane ticket to shop at one of Alaska Commercial's 32 retail stores.

"You won't find any of our stores on the road system," Wilhelm said. Today, ACC is rural Alaska's largest retailer--employing more than 900 staff members. But its stores are more than a good place to work and shop.

Many times over the years, Alaska Commercial's stores have served extra duty as banks, U.S post offices, community halls, courtrooms, marriage parlors, funeral homes and as safe havens for travelers.

Wilhelm said this company, which began as string of trading posts that bartered imported goods for Alaska's pelts, gold, artifacts and fish, has stayed in business by responding to changes in the retail market.

Today, the stores sell everything from produce and pilot bread to TVs, four-wheelers and the latest fashion-such as those brightly colored squishy shoes called Crocs that were added to the inventory last summer in response to customer demand, he said.

Chatyrbok said the company invests a lot of time scouring the marketplace to make sure the stores' inventory is up-to-date.

"We've always wanted to keep up with the demands and needs in the community," he said. "It's something we spend a lot of time and energy on."

It's that sort of up-to-the-moment thinking that has led to a new retail relationship between Alaska Commercial Co. and Alaska Communications Systems Group. On Sept. 8, the two companies celebrated the opening of the ACS outlet inside the AC Value Center store in Barrow, which means AC and ACS can offer Barrow customers the convenience of face-to-face service, Chatyrbok said.

GOOD NEIGHBORS

In addition to the coloring contests, community picnics, cake-cutting events and sales, one lucky person will also win a new Polaris snowmachine in celebration of the milestone.

"We've really made a big deal out of it," Chatyrbok said.

Wilhelm attributed part of the company's longevity to a business model that emphasizes the importance of being a good neighbor. Annually, the company donates more than $150,000 in support of organizations such as Girl Scouts, Alaska School Activity Association, and the "I did it by 2" child immunization program, he said.

"It became obvious that focusing on the children was something that needed to be done and we wanted to help with that," Wilhelm said. "We've always prided ourselves on being a good community member."

But the company's neighborly ways won't be enough to keep it operating if the people it serves reach the point where they can no longer find a way to pay the significantly higher costs of living off the road.

"We're always looking for ways to drive down costs," Wilhelm said.

As the company grows, so does its buying power, he said.

"We're getting to a place where we can really have an impact on the cost of goods," he added.

Any savings help to offset a tide of rising costs such as fuel for heating and transportation and increases in bypass mail rates, Wilhelm said.

Bypass mail is an important link in the transportation network that subsidizes Alaska's many off-road communities. Federal funds totaling $71 million to $132 million a year enable rural Alaska to enjoy a semblance of pricing as in the urban area, Wilhelm said.

A SHARED HISTORY

In its earliest days, the company was focused on acquiring furs that could be resold in the London market for substantial profits. But it wasn't long before the company branched out into many other ventures, such as six salmon canneries and transportation.

ACC chartered the steam ship Excelsior in 1897 to transport the first wave of gold seekers from San Francisco to the Klondike.

Alaska Commercial changed tactics again in the early 1900s when the gold rush ended and people began leaving. The company stayed afloat by merging with two competitors and reorganizing its holdings.

In 1902, two subsidiary corporations it had created with its partners purchased its various assets, and in 1922, a group of employees purchased the company.

When the company next changed hands, the sale split it into three separate properties. The department stores in Anchorage, Fairbanks and Kenai were sold to Nordstrom. N C Machinery was sold to the Skinner Corp. of Seattle, and in 1977, the remaining 11 rural retail stores were sold to the Community Enterprise Development Corp. of Alaska. The retail stores were sold most recently in 1992 to the 300-year-old North West Co. of Canada.

"Part of what we're really proud of is we've been around for 140 years," Wilhelm said. "The company has had different owners, but the mission has never changed."

During the company's first 100 years, N C Machinery and Alaska Commercial Co. were segments of the same company, Chatyrbok said.

Based on that shared history, N C Machinery also is marking the historic milestone, according to N C Machinery spokesperson Scott Field.

N C Machinery has been the Caterpillar machinery and power systems dealer for Alaska and the Yukon Territory since 1926. Since that time, the company's heavy equipment has been busy building the basic infrastructure of the new frontier. N C machinery now employs more than 1,000 people at 12 branches in Alaska and Washington.