The commencement of the line at the head of the Canal was the course taken by Columbia Street, and D. Rainey applied for a pre-emption of the land west of this under Alaska regulations. J. W. Stewart applied for the land to the east in 1902. Later when the boundary was established, Rainey purchased his land from the Provincial Government.

Rainey was one of a party of 65 men who landed at the head of the Canal in May, 1898, to re-discover placer diggings somewhere in the interior. The party was headed by a man of the name of Burgess, who had in some way obtained a map showing where the ground lay, and organized the party in Seattle, each member contributing $25 towards expenses.

But no diggings were found and hostility was manifested against Burgess, who, fearing for his life took the opportunity to escape in a boat with Harvey Snow, a prospector form the Nass, who had arrived following information given him by Indians that a large party of white men were at the head of the Canal prospecting for gold. Snow figured to be in on the strike, but when he found how matters stood he closed a deal with Burgess to take him away in his boat for &50; and in the night they left, arriving two days later at Nass Harbour, where Burgess caught a steamer for the south, and was heard no more of.