Have you heard ‘Betty Co., Ed’
‘I Love You so Much,” records
at the Alaska Shop?
Classified Advertising
RATES—Fifteen cents per line i
Count six average words to a
line. Minimum charge 50 cents,
first insertion. 7'/fe cents pe> i
line for subsequent insertion
FOUN D—Pair horn-rim glasses
with bows near railroad yard i
round-house; 50c, the price of i
this notice, takes 'em away.
LOST—Fair of eye-glasses about
week ago. Return to Gateway
and receive reward.
FOR SALE or long lease. Dream
land hall. Inquire Gateway.
WANTED TO BUY
Hundreds have sent us discarded
jewelry, old gold, false teeth,
bridges, crowns, silver, platinum,
diamonds, antiqnes. Mail yours
today. Money mailed promptly.
Goods returned if offer refused.
Uhler. Sta. B. Brooklyn, N. Y.
LEGAL NOTICE
UNITED STATES DEPARTMENT
OP THE INTERIOR, GENERAL
LAND OFFICE, C. S. LAND OF
FICE.
Anchorage. Alaska. January 17.
1931.
Notice is hereby given that
RUDOLPH HECTOR has made
application for a Soldiers’ Addi
tional Homestead, serial 07272,
for a tract of land . situated on
South side of Hiuliuk Creek near
Unalaska, Una la ska Island, U. S.
Survey 1946, containing 9.37 acres.
U. S. L. M. 1945 bears S. 35o 28’
46” E. 10.30 chains distant from
Cor. No. 1 this survey 1946. Lat
itude 53o 52’ 35” North, Longi
tude 166o 32’ 18” West.
Any and all persons claiming
adversely any of the above men
tioned land should file their ad
verse claims within the period
of publication or thirty days
thereafter, in the U. S. Land Of
fice, Anchorage. Alaska, or they
will be barred by the provisions
of the Statutes.
J. Lindley Green, Register
First publication Jan. 23. 1931,
last publication Mar. 20, 1931.
Publish Jan. 23. 30, Feb. 6,
13, 20, 27. Mar. 6, 13. 20. 1931.
LEGAL NOTICE
UNITED STATES. DEPARTMENT
OF THE INTERIOR. GENERAL
LAND OFFICE, U. S. LAND OF
FICE.
Anchorage. Alaska January 17,
3931.
Notice is hereby given that
LOUIS C. GREENE has made
application for a Soldier’s Addi
tional Homestead, serial 07269.
for a tract of land situate at Vil
lage of Unalaska, Unalaska Is
land, U. S. Survey No. 1943, eon- ;
taining 0.22 acres situated North
west of and adjoining U. S. Sur
vey, No. 853 Tract C. *U. S. L. M.
1945 bears S. lOo 27’ 20” E. 22.10
chains distant from Cor. No. 1, |
this survey 1943. Latitude 53o;
52' 42” North, Longitude 166o j
32’ 20” West.
Any and all persons claiming j
adversely any of the above men-:
tioned land should file their ad- j
verse claims within the period!
of publication or thirty days;
thereafter, in the U. S. Land Of- \
lice, Anchorage, Alaska, or they!
will be barred by the provisions
of the Statutes.
J. Lindley Green, Register
First publication Jan. 23, 1931;
last publication Mar. 20. 1931.
Publish Jan. 23, 30, Feb. 6, 13.
The
PANHANDLE
Tobaccos
Candies
Cards
Soft Drinks
CHRIST LARSEN, Prop.
Opposite Seward Grill
THE SENATE COMMITTEE’S REPORT
(Continued from Pape One)
of deficits, the plant was turned back to the railroad. Instead of
abandoning the plant the railroad continued to operate it at a cost ;
in 1930 of $28,600 or 33 per cent of the gross income of operating
the railroads two river steamers, which were also operated
at a net loss of $10,700, not taking into account revenues re
ceived by the railroad for hauling the freight handled by the boats.
This expense of $28,600 was partially offset, however, by the in
come from water, heat and electric service sold to the extent of
$9,400, leaving the net annual expense to the railroad of operating,
$19,240.
In 1916 railroad authorities installed a power plant in Anchor
age for the supply of power, heat and light to the shops and other
railroad property. They also installed an electric distributing sys
tem and a telephone system throughout the town. The telephone
plant was leased to the municipality on a rental basis; electric ener
gy was supplied the town at a basis not to exceed 8 cents per kil
owatt-hour, including use of the railroad’s distribution system.
These arrangements proved advantageous to the railroad and satis
factory to Anchorage, as the town enjoyed a substantial profit.
The telephone contract is still in effect, but the arrangement
for electric service was terminated' about September 1, 1929, when
the municipality began to purchase its electric energy from a pri
vately owned hydroelectric plant, the financing of which was ren
dered possible, and only possible by assurances from the railroad
authorities that they would cease to produce electric energy even
for the railroad. Though its revenue from the sale ot electric ener
gy would be gone, the railroad turned over, intact, its electrical
distribution system, without one penny of compensation. It did
not even require the private plant to purchase its electric genera
tors but generously agreed to maintain its electric station intact as
a standby plant without any compensation whatever, except should
an emergency arise requiring operation, then the railroad was to
be repaid the expenses incurred.
At the close of the last fiscal year, June 30, 1930, this arrange
ment had been in effect about nine months and the loss to the rail
road, which was inevitable, as compared with the corresponding
nine months of the previous year, amounted to some $55,000, add
ing that much to the railroad’s already mounting deficit.
It may be urged that this transaction has an ugly aspect and it
has except for the childlike blandness and naivete of the explana
tions offered by the responsible officials which may be summed up
about as follows: “The result was wholly unexpected, and is indeed
much regretted, but then the railroad had no authority to distri
bute electricity except as a matter of necessity. The necessity in
this case, after 13 years' service by the railroad, ended when some
one else was ready to supply Anchorage. Therefore, the railroad
should have retired from the business, although it was its one pro
fitable activity, and such action would permanently add to the an
nual deficits and junk otherwise valuable assets.”
Another factor that has slightly affected and will increasingly
effect the Alaska Railroad adversely is the competition of automo
biles and trucks using the Richardson Highway that has been con
structed by the government at a cost of some $6,383,000, and upon
which, during the fiscal year 1930, was expended for maintenance
and otherwise, about $303,000.
Valdez has a population *1930 census) of 643; Fairbanks 2,101.
The highway is 408 miles in length. There are, along the route, about
719 people. The competitive potentialities of the government built
and operated railroad and highway, denotes an apparent lack of
coordination in the practical promotion of governmental activities.
It was the opinion of the railroad’s superintendent of transpor
tation that an increase of passenger rates would not materially
reduce the number of passengers either local or tourist.
While the prospects for gold mining seem bright, its develop
ment will necessarily be slow unless bonanza discoveries are made,
Exports of this metal contribute little to outgoing traffic, the chief
revenue being due to importation of supplies therefor. It is not
practicable for the railroad to promote gold production except by
the construction of trails and roads, to new mining districts that
would serve as “feeders” for the railroad, something to which the
Alaska Road Commission has been giving attention.
It was testified that evidence had been discovered of deposits
of base metals some distance to the west of that section of the rail
road between Mile 275 and 300. This evidence consists of nothing
but prospects, which promise little or no tonnage to the railroad
in the near future, although some big developments of this character
have been anticipated by optimistic Alaskans for years.
Coal is only marketable as necessity demands. The necessities
of transportation of a limited amount of this fuel, and such require
ments can not be stimulated to any appreciable extent. Neither can
much of a demand be developed for industrial purposes in a region
of 50,000 square miles containing less than 8,400 inhabitants.
The chief consumer of coal is the Alaska Railroad, and so far
as other large users are concerned they are limited to a half dozen
power plants. There are large deposits of excellent lignite along the
railroad some 113 miles south of Fairbanks, affording the coal sup
ply of tha tregion. At one time this grade of coal was delivered in
Anchorage and even Seward, but as it contains about 18 per cent
moisture, its use in the latter localities has given way to the Mata
nuska Valley bituminous coal. Unfortunately, however, though this
latter coal is high in carbon, as mined, it contains so small a per
centage of lump, due to the bending and folding of the strata, that
the producers have been unable to compete with the coal from Brit
ish Columbia, even in the local Alaska markets outside of the rail
road territory. As a consequence, there is little or no exportation
of this or any other coal, and hence, the coal traffic of the rail
road has been almost wholly limited to the demands for local con
sumption.
There are deposits of anthracite coal beyond the present ter
minus of the Matanuska branch. Surface indications justify ex
haustive investigation by commercial interests, as a market might
be found in Pacific Coast cities. Tims, while the coal prospects in
this particular region are promising, it is very uncertain when the
sanguine hopes of the Alaskans for the development of a great ex
port coal business will be fulfilled. The railroad has done its part
by establishing low local coal rates, but thus far to no avail.
As has been stated, there is little or no timber in this region
that is suitable for export and markets are too far away to encour
age production and exportation of wood pulp. However, it is claimed
that not far to the northwest of Anchorage there is a large tract
of birch for which it is hoped a market can be found for the man
ufacture of furniture. If a demand develops for this birch it would
ultimately be loaded on vessels in Cooks Inlet, and the railroad get
no haul whatever.
In connection with the fur and fishing industries, there was no
suggestion of the possible development of traffic, except for sup
plies inbound; therefore, there remains but the agricultural indus
try to consider.
Before the advent of the railroad, farmers in the interior of
this region secured high prices for their products, but the com
plaint today is that the railroad freight rates on such products are
so low that there is no margin for the producer. The leading farm
| er and Producer of garden truck in Fairbanks testified that he had
| been engaged in the business 25 years, and out of its earlier pro
fits had invested $60,000 in his farm and , greenhouses, but be
: cause of the low freight rates in recent years he had been having
| difficulty making ends meet. Such statements are supported by the
fact that whereas the census of 1020 reported 220 farm operators
in the railroad territory, there are now but 168 in that 50,000 square
miles.
If the farming industry should develop, it must do so at the
expense of farm products now being shipped in, and naturally
would cause a reduction in freight income. This*was the view of the
witnesses generally, and moreover that, as a consequence, the de
velopment of agriculture would neither advantage nor disadvantage
the railroad.
The reindeer herds in Alaska hare developed until they now
number about 800,000 animals. The grazing grounds largely utilized
nre from 300 to 400 miles west of the Alaska Railroad. Unfortunately
there is little territory in the vicinity of the railroad suitable for
the rearing of these animals. However, it is proposed that merchant
able reindeer be driven to the railroad, held for a portion of a
year, slaughtered, and the products shipped via Seward to the
States, where it is hoped a market may be developed therefor.
If this proposal should prove feasible, a considerable railroad
traffic might result, as the herds are increasing about 33 per cent
annually. The possibilities involved in this proposal are promising
if the animals can be successfully conditioned after reaching the
railroad and a permanent market for reindeer products established.
It is significant, however, that Alaskans prefer beef when avail
able, and while a degree of success might be achieved, the pros
pects are not such as to justify the assumption of results until they
are accomplished.
From these facts, and because of the consistent efforts to stim
jate the road’s business in the past, it must be apparent that the
prospects for increased traffic as the solution of the Alaska Railroad’s
problem are not promising and that the situation does not justify
delay in the adoption of the other alternative, to the end of wip
ing out the railroad’s deficits; that is, increased passenger and freight
rates.
In this connection Mr. J. C. Cunningham, an experienced railroad
man who has been with the Alaska Railroad since 1916, and for
some years has served as superintendent of transportation, testified
as follows:
“If the government wants to make this railroad a paying pro
position, make it pay for itself and operate it as a business propo
sition, there is only one increase to make. That is practically 125 to
150 per cent ovdr the present rates. You would have to do that.
Your operating expenses are practically $2,000,000; your revenues
are practically $1,000,000. A 100 per cent increase in rates would
not do it. You would not break even, for this reason: By this in
crease you are going to lose some business. So I am adding the ad
ditional 25 per cent so as to take up the slack on what decrease in
business you would have by an increased rate. Those are just
rough figures. I do not want to make the statement that 100 per
cent would do it. It would have to be something more than that."
With careful business management and economics which your
committee deems practicable, it is probable that an increase of less
than 125 per cent would accomplish the desired result. However, if
such a policy were adopted—yes, in any case—Congress should ex
ercise a closer supervision of the property and maintain a closer
touch with the management, as one of the brief causes of the
present situation has been due to reverberated local criticism which,
in a measure, has been responsible for a change in management five
(Please tnrn to Page Four)
BARGAINS
DRESSES. COSTS, SGSRFS, LINGERIE
AT UNHEARD OF PRICES
THE BLUE SHOP