The North-West Mounted Police once enlisted the help of Canadian Pacific in a successful bid to outwit a gang of ruffians in a dockside encounter at Skagway and prevent a shipment of Yukon gold from falling into their hands.

As a result of this cooperation, the shipment, some $225,000 worth of Canadian government gold and cash, was safely moved from Alaska to Victoria in 1898 in Canadian Pacific's steamer, Tartar.

The ship's officers, crew and agents at Skagway played a key role in the dramatic and dangerous confrontation between the NWMP and the hoodlums.

In his book, "Sam Steele, Lion Of The Frontier", Robert Stewart tells how Inspector Zack Wood and Superintendent Sam Steele faced the challenge of moving the winter's collection of custom's fees from gold rushers entering the Yukon through the lawless Alaskan community to the ship.

Steele had already helped bring law and order to the Canadian West, the railway construction camps of Canadian Pacific, and the Yukon. Through his efforts and those of his colleagues, Canada had avoided the extremes of the American West and Alaska where gun slinging, murder, and riotous acts had become part of frontier development.

In Alaska, the NWMP had no authority as lawmen, and had to use guile in an effort to out-manoeuver Skagway thug Soapy Smith, leader of a gang of toughs who terrorized the U.S. community.

From his Yukon headquarters, Steele had started a rumor in the gossipy gold camps that Inspector Wood was leaving the Yukon on personal business. The idea was that Smith and his gang would eventually hear about the trip, but would not suspect any gold movements.

After packing the gold into kit bags, Wood, a sergeant, and a constable crossed the boundary into Alaskan territory. Wood checked with Canadian Pacific officials and learned that the Tartar was not scheduled to dock for several days.

The officers then checked into a hotel in the town of Dyea, just across the bay from Skagway. Before long the sergeant discovered that members of Smith's gang had been seen prowling the streets of Dyea.

"Wood summoned the Canadian Pacific agent in Skagway to the hotel, and together they made further plans to outwit the infamous Soapy," Stewart writes. "They secretly hired a small tug and procured a rowboat, which they hid near the Dyea dock."

On 14 Jun 1898, Wood learned that the Tartar had docked in Skagway. After hastily carrying the bags of money to the concealed rowboat, the mounties rowed toward the tugboat.

"As the tug pulled out into the bay, a boat full of gunmen appeared in its wake," writes Stewart.

"Wood ordered his men to shoulder their Winchesters and shouted to the men in the boat that they would open fire if they came any closer. The boat veered out of range."

But the danger was not over. After the mounties reached the wharf, they began unloading the bags of gold. Suddenly, a rough-looking mob came charging up, with Soapy Smith in the lead.

Obviously, Smith now knew what was in the kit bags. The crowd began to jostle the policemen as they tried to carry the bags to the Tartar, which was alongside.

"Then an order rang out from the ship's wheelhouse, and a squad of sailors ran down the gang plank with loaded rifles. They levelled them at the mob," writes Stewart.

"Another squad took up positions on the hurricame deck with rifles pointed. At that moment Inspector Wood came face to face with Soapy Smith.

"Why don't you stop in Skagway for a while, Inspector?" the gang king said smilingly. Wood politely declined the invitation and Smith turned and led the mob off the dock.

Wood and Steele were promoted shortly after the event. A few weeks later, the leader of a vigilante group from the community killed Soapy Smith in a shoot-out on the Skagway dock.

This White Pass & Yukon Route article contains more data about Soapy Smith.