Paradoxically, the first gold finds that tremendously influenced Alaska were in Canada. The Klondike strike of 1896 brought a stampede, mainly of Americans, and most of them came through Alaska. The big discoveries in Alaska itself followed—Nome in 1898–99, Fairbanks in 1902. The miners and prospectors (the sourdoughs) took over Alaska, and the era of the mining camps reached its height; a criminal code was belatedly applied in 1899.
The longstanding controversy concerning the boundary between the Alaska Panhandle and British Columbia was aggravated by the large number of miners traveling the Inside Passage to the gold fields. The matter was finally settled in 1903 by a six-man tribunal, composed of American, Canadian, and British representatives. The decision was generally favorable to the United States, and a period of rapid building and development began. Mining, requiring heavy financing, passed into the hands of Eastern capitalists, notably the monopolistic Alaska Syndicate. Opposition to these “interests” became the burning issue in Alaska and was catapulted into national politics; Gifford Pinchot and R. A. Ballinger were the chief antagonists, and this was a major issue on which Theodore Roosevelt split with President William Howard Taft.