populated United States terri
tory?
What has retarded the growth
of Alaska?
What unseen forces have been
at work through the years to
keep locked that vast treasure
house of the people of the Unit
ed States?
A special committee of the U.
S. Senate has been named to
find out.
And when the complete story
is told it promises to be sensa
tional.
The specific task of the com
mittee is to study the Alaska
Railroad. It was instructed to
inquire into the operation, eco
nomic situation and prospects
of the line.
In so doing, it must investigate
the tributary region. In that
region are natural resources
worth billions of dollars.
Any complete study of the
Alaska Railroad must be a study
of vast and rich territory.
The committee, consisting of
Senators Howell, Nebraska, Ken
drick, Wyoming, and Thomas,
Idaho, is scheduled to go to Alas
ka the middle of August to start
its investigation.
Later it is to report “as soon
as practicable the results of such
investigation, together with its
recommendations for legislation
in connection therewith.”
It is presumed that after its
trip to Alaska the committee will
hold public hearings for collec
tion of further data.
Too, the committee will scan
congressional and departmental
documents that have accumu
lated during 30 years of dispute
over administration of the Terri -
tory.
It will study testimony heard
during the fight over location of
the railroad, it will inspect re
cords concerning building of the
line, it will view documents com
piled by the Navy relative to the
use of Alaska coal for the Paci
fic fleet.
It will look into data filed with
the Department of the Interior
concerning forest resources and
applications for permits to use
the forests.
It will study the industrial his
tory of the empire.
And everywhere will be traces
of waste—millions of dollars
thrown away, and billions of
dollars in resources permitted
to lie undeveloped.
Costly Blunder Hampers
Development in Alaska
The Alaska Railroad, to be
subject this summer of an in
vestigation by a special commit
tee of the United States Senate,
has cost the people of the nation
$70,000,000
The primary task of the com
mittee is to learn what has caus
ed that loss on a line where bil
lions of dollars worth of natural
resources await development; to
learn what forces strangled that
development
The railroad was started as a
private enterprise in the spring
of 1902 by the Alaska Central
Railway Co.
After' varying fortunes, the
company was bought by the U.
S. Government for $1,150,000, a
figure fixed by a government ap
praisal.
At that time the road consist
ed of 71 miles of standard guage
track, advance grading, surveys,
si ops and other equipment. It
ran from Seward toward Fair
banks. It was later completed
at Fairbanks at a cost of $65,
000,000.
Previously the government had
purchased a narow guage track
and stock of a line running from
Fairbanks to Chatanika, 45 miles
for $300,000.
Still Losing Money
The purchase of the railroad
was by Act of Congress, approv
ed in 1914.
For 16 years the railroad has
lost money and constantly is
costing added thousands of dol
lars.
The original railroad ran from
Seward. The Government estab
lished the terminus at Anchor
age. Seward provided one of
the finest harbors on the Pacific
Coast. The route to Anchorage
through Knit Arm was rapidly
filling with silt.
The water terminus of the
railroad soon became, in effect,
114 miles inland. There had
been constructed a town witn
water facilities, a sewer system,
lights, telephone plant, walks
and graded streets at a cost of
millions. Elaborate terminal fa
cilities also were provided.
During the years 1915 to 1916,
the government urged farmers
to settle in Matanuska Valley to
raise potatoes to be shipped out
over the road.
More than 400 went and grew
potatoes.
In the fall when the crop was
ready to be sent to the States,
the Anchorage terminus of the
railroad was closed by silt and
ice. It was impossible for the
farmers to get their potatoes to
market, and they found them
selves with a surplus of 2,500
tons.
200 Farmers Move Out
As a result, 300 farmers left
the Valley and the entire Terri
tory suffered not only from the
loss of population and industry,
but from an evil reputation.
While those potatoes were ly
ing in Anchorage, the original
unit of the Alaska Railroad from
Seward was not connected with
the Anchorage branch and the
government refused to make the
link. Such action would have
permitted shipment direct to
open water and waiting boats.
In 1918 the link was effected,
and at last the Alaska line had
an actual open water terminus.
But more millions hail been lost.