THE BUILDING OF RAILROADS IN ALASKA HEARINGS before the COMMITTEE ON THE TERRITORIES HOUSE OF REPRESENTATIVES SIXTY-THIRD CONGRESS First Session on bills H. R. 1739, H. R. 1806, and H. R. 2145 report of FRANK E. GUERNSEY NOVEMBER 1, 1913 [SUBCOMMITTEE PRINT] washington government printing office 1913 W t 1 , A ^ COMMITTEE ON THE TERRITORIES. House of Representatives. WILLIAM C. HOUSTON JAMES S. DAVENPORT, Oklahoma. JOHN T. WATKINS, Louisiana. SCOTT FERRIS. Oklahoma. AUGUSTINE LONERGAN, Connecticut. JAMES H. O'BRIEN, New York. STEPHEN A. HOX WORTH, Illinois. WOODSON R. OGLESBY, New Yolk. WALTER A. WATSON, Virginia. CLEMENT BRUMBAUGH, Ohio. Tennessee, Chairman. FRANK E. GUERNSEY, Maine. JONATHAN N. LANGHAM. Pennsylvania. BIRD S. McGUIRE. Oklahoma. ALBERT JOHNSON, Washington. CHARLES F. CURRY, California. CHARLES M. HAMILTON, New York. •T. A. FALCONER, Washington. JONAH K. KALANIANAOLE, Hawaii. JAMES WICKERSIIAM. Alaska. W. A. Cathcart, Clerk. n THE BUILDING OF RAILROADS IN ALASKA. PROBABLE TONNAGE OF RAILWAYS IN ALASKA. Washington, D. C., November 1, 1913. Hon. William C. Houston, Chairman Committee on the Territories, House of Representatives. Dear Sir: In accordance with the request of the subcommittee having under consideration H. R. 1739, IT. R. 1806, and H. R. 2145, I have collected from the testimony given before the Committee on the Territories of the House of Representatives and other sources what information I have been able to, bearing upon the probable tonnage of the railway or railways proposed to be constructed by any or all of the bills above mentioned, as well as data concerning the tonnage of railways now in operation, together with some sta¬ tistics showing the total imports and exports of the Territory of Alaska in recent years, all of which I respectfully submit herewith. Very respectfully, Frank E. Guernsey. On October 1, 1913, I called on the Interstate Commerce Commis¬ sion for a statement showing the tonnage of the railroads now oper¬ ating in Alaska, and on October 7 I received the following reply and accompanying statement: Interstate Commerce Commission, Office of the Secretary, Washington, October 7, 1913. Hon. F. E. Guernsey, House of Representatives, Washington, D. C. Dear Sir: In compliance with your request of the 1st instant, there is inclosed herewith a statement compiled from the annual reports of the Alaska Northern Rail¬ way Co., the Copper River & Northwestern Railway Co., the Pacific & Arctic Railway & Navigation Co., and the Tanana Valley Railroad Co., for the year ending June 30, 1912, which are the last annual reports filed with this commission by the above-anmed companies, showing tons of freight originating on road, tons of freight received from connecting roads and other carriers, and a total freight tonnage. Respectfully, Alfred IIolmead, Secretary. Statement showing tons of freight handled (company's material excluded) by companies named, as shown in the annual reports to the Interstate Commerce Commission for the year ending June 30, 1913. Name ol road. Freight orig¬ inating on this road. Freight re¬ ceived from connecting roads and other carriers. Whole tons. 257 17,602 630 13,961 Whole tons. 2.697 22.X90 2,8X1 Alaska NorthernRy. Co...... Copper River A Northwestern Ry. Co Picilic A Arctic Railway & Navigation Co Tanana Valley R. It. Co 17462—13 4 THE BUILDING OF RAILROADS IN ALASKA. I wish to introduce in the record at this time some statistics taken from the report of the Alaska Railroad Commission in regard to the commerce of Alaska. Comparative statement of tonnage (domestic merchandise) shipped from the United States to principal points in the Yukon Basin, years 1903-1911. [Rased on valuation of *8(1.50 per ton.] Ports. 1903 1904 1905 1906 1907 1908 1909 1910 1911 Tons. Tons. Tons. Tons. Tons. Tons. Tons. Tons. Tons. Chena 325 857 2,520 5,415 5,580 5, 890 3,000 1,395 1,392 Circle 480 253 595 570 539 961 858 586 364 Eagle 1,1(58 1,132 1,220 913 955 1,472 3,740 869 296 Fairbanks 623 4,250 18,150 14,628 19,300 16,830 26,650 12,660 10,330 271 850 830 592 968 Rampart 825 444 1,469 477 520 410 410 160 38 St. Michael 2,485 5,790 11,840 19,390 10, 290 8,450 11,600 17,850 16,850 Tanana 789 425 900 1,660 2,040 1,700 2,440 1,975 2,150 All others 1.270 729 1,106 847 2,395 3,800 226 4,420 8,150 7,695 13,880 37,800 53,900 41,890 40,370 49,750 40,507 40,548 Comparative statement of through freight (in bond) over the While Pass &• Yukon Ry. for points in the Yukon, Basin, 1903-1913. Destination. 1908 1909 1910 1911 1912 Tons. 89 556 3 1,081 Tons. 172 452 12 1,833 Tons. 57 309 199 900 Tons. 162 350 235 429 Tons. 116 283 188 630 Yukon River, above Tanana Yukon River, below Tanana Fairbanks and Tanana River Total 1,729 2,469 1,465 1,176 1,217 As throwing some light on the commerce of Alaska and its bearing as a freight-producing region, 1 wish to put in the record the last report of the collector of customs for Alaska, i. e., so much as precedes the collector's signature: Commerce and Customs Business of Alaska for the Calendar Year Ending December 31, 1913. United States Customs Service, Office of the Collector of Customs, Juneau, Alaska, January 31, 1913. Although there was no material increase in the population of Alaska during the calendar year 1912, the commerce of the Territory broke all former records in almost every particular. The total trade, valued at .$72,741,000, is 27 per cent higher than that for any previous year. The balance of trade in favor of Alaska is the largest of record, amounting to almost $20,000,000. Gold, which until recent years has constituted the bulk of the Territory's exports, though greater than for the two previous years, was 50 per cent less in value than the total of the other Alaskan products shipped to the United States and was exceeded by the single item of salmon—canned and otherwise preserved. For the first time both the shipments of merchandise from the United States and from Alaska to the United States passed the twenty-million mark. The shipments to southeastern Alaska show an enormous increase and are more than double those of any one of the other three divisions. This increase was principally due to the estab¬ lishment of 20 new salmon canneries throughout the division and the extensive develop¬ ment of mining properties in the Juneau district. THE BUILDING OF RAILROADS IN ALASKA. 5 The following (able shows the value of the real and transit commerce of the Terri¬ tory. The imports and exports of foreign gold and most of the exports of merchandise to foreign ports represent the trade between the United States and the Yukon Terri¬ tory which passes through Alaska. Commerce of Alaska. Calendar years. 1909 1910 1911 1912 IMPORTS. Merchandise from the United States Merchandise from foreign ports Gold and silver from foreign ports Total imports $17,705,330 605,086 4,023,791 $17,431,588 669,614 3,453,709 $15,169,149 519,221 3,520,170 $21,992,761 925,034 3,840,546 22,334,207 21,554,911 19,208,540 26,758,341 EXPORTS. Merchandise to the United States Merchandise to foreign ports Domestic gold and silver to the United States Foreign gold and silver to the United States Total exports 13,522,137 1,120,218 18,278,962 3,845,705 13,699,594 1,119,919 15,195,954 3,441,834 19,318,859 1,174,393 14,699,694 3,353,361 24,793,886 1,452,955 16,031,705 3,704,173 36,767,022 33,457,301 38,546,307 45,982,719 The articles enumerated in the following table are all of Alaskan origin and the comparative figures are indicative of the growth and importance of the various industries of the Territory. The value of furs shipped during the year includes the products of the Pribilof Islands and shipments by mail—a total of $300,003—not shown in the bureau's reports for the same period. Owing to the fact that gold carried on the persons of travelers is not included in the returns made by this office, the value of precious metals reported shipped from the Territory is, as usual, slightly less than the amount shown by the Bureau of the Mint. Value of domestic merchandise and gold and silver shippedfrom Alaska to the United States. Articles. 1909 1910 1911 1912 Copper ore and matte F ish: Salmon, canned Salmon, all other All other fish and fish products $205,551 10,424,811 466,722 466,894 51,212 151,161 573,051 114,565 45,982 8,200 140,770 758,231 18,278,962 $230,737 10,418,508 487,301 440,015 64,925 185,284 468,223 151,590 11,286 6,750 113,772 885,934 U5,195,954 $2,898,885 13,136,980 502,134 478,497 63,439 170,991 816,850 124,200 49,455 41,830 20,551 852,758 U4,699,694 $4,904,715 15,551,794 907,242 589,529 41,662 283,339 728,554 129,375 77,159 90,831 18,012 1,000,261 1 16,031,705 Tin ore and concentrates Other merchandise Total 31,686,112 28,660,279 33,856,264 40,354,178 1 Gold and silver shipped to the United States. Judicial division. 1910 1911 1912 $3,262,083 3,699,674 317,872 7,916,325 $3,730,264 3,246,498 404,861 7,318,071 $4,040,858 3,138,881 734,507 8,117,459 15,195,954 14,699,694 16,031,705 6 THE BUILDING OF RAILROADS IN ALASKA. The following table of passenger movement indicates the travel, by regularly estab¬ lished routes, to and from the District and the Yukon Territory. Tourists and cannery employees bound for remote places are not included. The Eagle and Dawson movement shows the local frontier travel, which must not be considered with the general account, as the greater number of those passengers arrived or departed from Ketchikan or St. Michael and have been accounted for in their returns. 1910 1911 1912 Arrivals from the United States and British Columbia to— Southeaster^ southern, and western Alaska Nome, St. Michael, and Bering Sea 24,780 2,156 19,924 2,203 20,645 2,067 26,936 22,127 22,712 Departures to the United States and British Columbia from— Southeastern, southern, and western Alaska Nome, St. Michael, and Bering Sea 19,905 4,075 17,525 3,741 18,502 3,375 23,980 21,266 21,877 1,645 905 1,107 808 594 935 2,550 1,915 1,529 All of the four divisions of Alaska show an increase over 1911 in the values of ship¬ ments received from the United States. Most of the unprecedented increase, how¬ ever, was due to the unusual industrial activities in southeastern Alaska, resulting in that division receiving 44 per cent of the entire amount shipped to the district, an advance of 75 per cent over the preceding year. Comparative statement showing value of merchandise shipped from the United States to the different divisions of Alaska. Division. 1908 1909 1910 1911 1912 Southeastern Alaska Southern Alaska Bering Sea, etc St. Michael and Yukon River Total $4,921,232 3,931,002 3,516,659 3,493,778 $4,415,025 5,249,516 3,735,736 4,305,053 $5,236,325 4,538,225 4,150,679 3,506,359 $5,492,416 3, 246,464 2,919,456 3,510,813 $9,769, 224 4,321,689 4,168,934 3,732,914 15,862,671 17,705,330 17,431,588 15,169,149 21,992,761 The tables following give the value of merchandise shipped to Alaska from the United States for the year 1912, segregated as to place of consignment, with compara¬ tive statements for five years, and general customs business transacted by ports. J. R. Willis, Collector of Customs. I wish also to have printed in the record an extract from Bulletin 442, of the United States Geological Survey, entitled "Mineral Resources of Alaska, 1909, by Alfred H. Brooks, and others," and found on page 25 of the bulletin: In 1909 about 47,000 tons of freight was received at Nome, including merchandise, coal, lumber, and live stock, at a cost of about $660,000. The cost of freighting to the mines by coasting vessels and wagons in summer and by sleds in winter in different parts of Seward Peninsula varies from about $80 to $200 a ton in summer, and from about $3 to $50 a ton in winter. It appears that the average price paid for transpor¬ tation in the peninsula is about $20 a ton. On the assumption that half the supplies landed at Nome are for the use of the miners, this will represent an additional freight charge of nearly half a million dollars. The total transportation charge on the supplies of Seward Peninsula will, then, be about $1,200,000, or nearly 30 per cent of the value of the entire gold output of the year. No exact figures are available in regard to the amount of freight annually shipped to the Alaska portion of the Yukon Basin, but it is probably safe to say that this THE BUILDING OF RAILROADS IN ALASKA. 7 amounts to 30,000 tons and that it costs over $2,500,000 to land it at the end of sleam- boat navigation. The mine freight must then be hauled by wagons or sleds, except at Fairbanks, where there is a railway. It is estimated that this haulage from steamers to mines for the Alaska Yukon costs from $2,000,000 to $2,500,000 a year. The total annual cost of freight for the Yukon Basin is therefore probably between $4,500,000 and $5,000,000, or nearly 50 per cent of the value of the entire gold output. It should be noted that these estimates of the cost of freight do not include any charge for the transportation of fuel, which is included in the similar figures already presented on the commerce of Seward Peninsula. In the Yukon Basin practically only wood is used, whereas Seward Peninsula depends almost entirely on coal brought from a distance.' The following are estimates of expected tonnage on various trunk lines proposed to be built by the pending bills: CORDOVA-FAIRBANKS ROUTE. Freight movements from Cordova to Fairbanks will be carried on the Copper River & Northwestern Railway Co.'s tracks for 132 miles to the town of Chitina and over the proposed Chitina-Fairbanks line 313 miles to Fairbanks. The average freight entering the Rampart-Fairbanks district dur¬ ing the last five years amounted to about 24,000 tons per year of all classes, the maximum in any one year being approximately 33,000 tons and the minimum 15,000 tons. Having in mind the increase in freight movement to be expected and the natural development of new territory following the construction of a railroad, the commis¬ sion assumes that a line from Cordova to Fairbanks would carry, almost immediately, through freight at the rate of 45,000 tons of general merchandise northbound per year. The through south¬ bound freight in sight is so very little as to be negligible for the pur¬ poses of this analysis. In addition to the through freight, it is esti¬ mated that coal mines will be operated in the Nenana lignite fields. This will involve the construction of a branch line from 30 to 50 miles in length, although it is at least possible that the Nenana coal may underlie certain territory through which the main line will be run. Without definite data, it is assumed that 30,000 tons of coal will be hauled an average distance of 20 miles on the main line and that 1,000 tons of local freight originating between Chitina and Rich¬ ardson will be hauled an average of 150 miles. In round numbers, therefore, the annual freight ton-miles would amount to 15,000,000, or the equivalent of 50,000 tons of freight hauled over the entire 313 miles of line. It is assumed that there will be an annual through passenger traffic of about 10,000, or 3,000,000 passenger miles. VALDEZ-FAIRBANKS ROUTE. This route involves the use of no part of any existing railroad. Running in a northerly direction for 101 miles it reaches a point on the proposed location of the Chitina-Fairbanks route considered in the foregoing section. From thence to Fairbanks, 279 miles, the two routes would be identical. The business which a railroad connecting these two termini might reasonably expect would be practically the same as in the case of Chitina and Fairbanks, with a small increase for local freight origi¬ nating in the immediate vicinity of Yaldez. For this study, therefore, 8 THE BUILDING OF RAILROADS IN ALASKA. the tonnage for the first five years of the road's existence is assumed to be as follows: Tons. Miles. Through freight 45,000 30,000 2,000 380 20 150 Nenana coal In round numbers, 18,000,000 ton-miles, or the equivalent of 47,500 tons of freight, over the entire 380 miles of line. It is further assumed that there will he 10,000 through passengers annually, or 3,800,000 passenger-miles. SEWARD-FAIRBANKS ROUTE. Freight movements from the seacoast to Fairbanks over the Seward-Fairbanks route would be carried for 71.6 miles over the existing tracks of the Alaska Northern Railroad and from thence to Fairbanks, a distance of 391.4 miles, over the proposed Susitna Valley route to Fairbanks. In the main, the tonnage expectancy of this route would be the same as that of the Cordova-Fairbanks line, previously considered, with an allowance for coal traffic originating in the Matanuska district. Were this road built and operated on a traffic agreement with the Alaska Northern, the opening of the coal fields would result in a coal tonnage from a branch line tapping the Matanuska district. The hulk of this coal movement would go southward to Seward and there¬ fore become a source of revenue mainly to the Alaska Northern Rail¬ road. A part would undoubtedly be distributed in the Susitna Valley, but as the amount of this which could be counted upon for revenue would necessarily be small during the early part of the road's exist¬ ence, it is only placed at 1,000 tons annually. The estimate of ton¬ nage to be expected during the first 5 years following construction is, therefore, as follows: Tons. Through freight, 391 miles 45.000 Nennna coal, 20 miles 30 000 Local freisffit, Susitna Valley, 150 miles 1 000 Local coal shipment, Susitna Valley, 150; miles 1, 000 Total movement 18,500,000 ton-miles, or 47,000 tons of through- train haul. The passenger movement is estimated at 10,000 over the entire trackage, or 3,910,000 passenger-miles. SEWARD-IDITAROD ROUTE. Freight movements between the Iditarod district and Seward will be carried over the trackage of the Alaska Northern Railroad for 71.6 miles, thence over the proposed new line for approximately 344 miles. Based upon such information as the commission was able to obtain concerning freight movements in this district in the year 1910-11, the following tonnage assumptions are made: Through freight between Seward and McGrath, 344 miles new line, 72 miles Tons. Alaska Northern 15, 000 Local freight, 100 miles 10,000 Coal, 230 miles 10,000 Coal, 120 miles 10,000 Coal, 30 miles 10,000 the building of railroads in alaska. 9 A total of 9,960,000 ton-miles, or 29,000 tons through-freight haul. In addition to this, it is assumed that there will he a through passen¬ ger traffic of 5,000 annually over the new line of 344 miles, or t ,720,000 passenger miles. Coal Roads. cordova-bering river coal field line via katalla. It is assumed that this route will have no traffic other than coal, and that the output of the mines will he 1,500 tons per day for the first five years. The commission estimates the amount of freight which will pass over the Bering River coal branch and the Copper River branch at 469.500 tons of coal, and they think they will haul 469,500 tons of coal per annum for 38 miles, plus an indefinite amount from the Kene- cott branch, and that that will take care of excess fixed charges due to the additional cost of construction of the Cordova and Chitina branch, amounting to $336,400 annually. cordova-bering river coal field line via lake charlotte. As in the case of the Katalla Line from the Bering River coal field, it is assumed that this road will carry coal traffic only, also that freight can be carried over the Copper River & Northwestern Rail¬ road Co.'s tracks at a per ton rate which would permit of profitable operation over the new construction. The commission has made similar estimates for other outputs, and has arrived at the conclusion that for an output of 1,000 tons per day the freight rate from the mines to Cordova, exclusive of terminal charges and wharfage fees, would be. $1.44, while for an output of 3,000 tons per day it would be 70 cents. lines from controller bay and katalla to bering river coal field. If either Controller Bay or Katalla were adopted as a port for shipment of Bering River coal it would become necessary to con¬ struct terminal facilities at a cost of approximately $2,500,000. The railroad construction required in the case of Controller Bay would be 25 miles, and Katalla 31 miles. It is estimated a coal output can be obtained of 1,500 tons daily on the Controller Bay line. cordova-chitina-matanuska coal field line. As in the case of the other coal branches considered, it is estimated that this line will carry coal traffic only and that freight may be carried over the 132 miles of the Copper River & Northwestern Rail¬ road Co.'s tracks at a per ton rate which would provide for profitable operation over the necessary new construction. It is estimated that a coal output can be obtained of from 1,500 to 3,000 tons daily. 10 THE BUILDING OF RAILBOADS IN ALASKA. SEWARD-KERN CREEK-MATANUSKA COAL FIELD LINE. Like the other coal roads, it is assumed that this line will haul eo traffic only. It will necessitate the construction of 115 miles of ne line from the Matanuska coal fields to mile 72 of the Alaska Northe) Railroad Co.'s tracks at Kern Creek on the north shore of Turnaga Arm. For the 38 miles between the coal fields and Matanuska Junction the assumed output of 1,500 tons per day can be carried by two trains daily, 750 net tons each. VALDEZ-MATANUSKA COAL FIELD LINE. Like the other coal roads, it is assumed that this line will haul coal traffic only. It necessitates the construction of 230 miles of new line, running from Valdez over Thompson Pass, Ernestine Pass, and Tahneta Pass. It is estimated that a coal output can be obtained of 1,500 tons daily. X