means of opening up the coal mines and let the Government ownership of railways alone. As you will see by reviewing my testimony before your committee, we have recently made additional large investments in that region which must during the forthcoming season be added to if we are to earn anything on the investments already made. I am confronted with the problem of raising money to assist in enlarging these undertakings, but I do not know of a single place in Canada, the United States, England, or elsewhere where I can borrow money to put into this enterprise when I must in justice to those from whom the money is received say in advance that there can not possibly be any interest paid on such money if the United States Government puts a railway in competition with us. We greatly fear that through perhaps an overzealous desire to have the Government invest money in a railway in Alaska those who are urging that this be done may have presented their evidence on the question in a way that might give the committee an optimistic impression of the conditions actually existing. A concrete example of this is afforded in a letter which Mr. Falcon Joslin wrote under date of July 9, 1912, to Senator Wesley L. Jones. This letter was written prior to the time consideration was being given to Government ownership of railways in Alaska, and its intent was to have the Government eliminate the tax on Alaskan railways (which I personally thing should be eliminated), and the communication paints a rather harrowing but true picture of every railway operating in Alaska. Mr. Joslin goes on to show that of the six railways there none of them are earning any money except the White Pass & Yukon Route, which line, according to a statement made by the chairman of the Board of Railway Commissioners of Canada after a thorough investigation, was on the verge of bankruptcy. Now, however, there seems to be a prospect of the United States Government spending $50,000,000 in Alaska to construct a railway of its own, and Mr. Joslin appears before the committee and presents a glowing account of enormous traffic to be developed by the spending of this money to serve a community that is already served by two transportation companies who are barely able to earn anything by the competitive conditions existing, each company now having a very large idle equipment owing to absolutely nothing else but a lack of business to handle. How the Government is going to create anything new by putting a third company in the field is more than I have been able to figure out and more than anyone else can figure out who will look at the situation squarely as it actually exists, and the only result that could possibly happen after a Government railway is built is to take the traffic away from the two lines already there. This is the thing we fear most: The Alaska Railway Commission's report being very alluring in respect to Alaskan traffic, supplemented by those who have financial interests to further at the expense of the Government, that the committee may gain a misunderstanding of the true situation and act upon advice which we contend does not put the facts before you in such a way as to enable you to determine this question on a fair and reasonable basis. The foregoing are a few of the practical questions we are up against and must deal with, and to us they are very grave questions. It has occurred to me, therefore, that it would aid your honorable committee in deciding this question in some way which would assist in getting increased transportation facilities in Alaska without harming other interests if the committee or members of it could find the time to go to Alaska and look the situation over on the ground and get information on the question at first hand to enable them to decide to better advantage the fair and reasonable thing to do under all existing circumstances and conditions. If such a trip could be arranged, I shall personally be very glad to aid the committee in every way possible to facilitate the journey, and all of our records will be placed at your command that you may gain a clear understanding of what it means to operate railways in Alaska, based upon 15 years' actual experience. If this suggestion meets with the serious consideration of your committee, I shall be obliged if you will advise me in advance, so that I may arrange to place our facilities and records at your command, in order to save your committee time. Yours, very truly, O. L. RICHESON, President. P. S.-I would respectfully request that you have this letter made a part of your record of the hearing. Hon. KEY PITTMAN, WASHINGTON, D. C., May 22, 1913. Chairman Committee on Territories, United States Senate, Washington, D. C. MY DEAR SENATOR: In response to your request I beg to submit the following information concerning leasing of mineral lands by the State of Colorado, same being condensed from a report by Mr. Horace W. Haven, mineral superintendent of the Colorado State board of land commissioners. The State of Colorado owns 473,732 acres of land, classified by the United States Geological Survey as coal lands. Of this amount 21,640 acres are now under lease to private parties, 25 leases, covering an acreage of 16,885.55 acres, being nonproductive, paying to the State a minimum royalty of $100 per annum. Four thousand seven hundred and fifty-four acres are included in 10 leases which are producing coal. These leases are paying to the State approximately $55,000 annually, the total amount by biennial periods being as follows: For biennial period ending Nov. 30 1908 1910 1912 $104, 456. 42 110, 134. 30 112, 585. 36 These leases are granted for a period of five years, requiring a minimum royalty to be paid of 10 cents per ton, mine run, upon at least 1,000 tons of coal annually, whether any coal is mined or not, the lessee, however, being exempt from this payment during the first year of such lease, but being required to continuously prospect until coal of sufficient quantity is found to justify mining operations. The State also owns a considerable amount of metalliferous ore bearing acreage, which is leased in 10-acre tracts for a royalty of 10 per cent of the gross output, with a minimum royalty of not less than $10 per lot per annum. Lessee is required to work said ground continuously. I have no information concerning the amount received by the State from its metal mine leases. Trusting that the information furnished will satisfy your inquiry, J. F. CALLBREATH. I am, Very respectfully, yours, DEPARTMENT OF THE INTERIOR, Hon. KEY PITTMAN, Chairman Committee on Territories, United States Senate. SIR: In reply to your letter of May 22 requesting information in regard to the occurrence of "all the necessary fluxes and reducing agents necessary to the smelting of copper and other ores on the coast of Alaska." So far as my knowledge goes, the general reply to your question would be in the affirmative. Proper mixtures for smelting the chalcopyrite ores of the coast region can be obtained by use of siliceous ores found in the same province. The chalcocite ores of the Chitina Valley can be smelted by mixing with the pyritic ores of Prince William Sound. Should workable deposits of iron ore be found in southeastern Alaska, limestone would be available from near-by sources. The same is true in the Iliamna Lake region. There is but little limestone on Prince William Sound, and it is doubtful whether that which has been found is pure enough for smelting purposes. On the other hand, limestone is abundant in the Chitina region. There is also some limestone near Seldovia, on the Kenai Peninsula. Limestone also occurs in the Matanuska Valley, but is rather inaccessible. The occurrence of limestone has been reported near Broad Pass, in the Susitna Valley. Respectfully, ALFRED H. BROOKS, [Telegram.] SEATTLE, WASH., June 2, 1913. Hon. W. L. JONES, United States Senate, Washington, D. C.: Was attorney of Alaska Central from beginning to end. Am satisfied that construction under Frost was done with as little loss as any other frontier construction. The first 18 miles furnish no criterion. Lack of funds compelled a scant, inadequate construction of this section, which Frost reconstructed. The extremely heavy construction is beyond mile 41 and consists of riprap along Trail River, heavy rock work over the second summit, long and high trestles on curves and over a loop, 7 tunnels aggregating 3,600 feet, 5 bridges aggregating 2,500 feet, several miles of pile driving across Placer Valley and head of Turnagain Arm, protective dikes against Turnagain Arm 55-foot tides and ice. The tunnels and much other work done in Placer Canyon in face of almost insurmountable obstacles. JAMES A. HAIGHT. Extending homestead laws and providing for railroads in Alaska, ap- Extending coal-land laws to Alaska, approved June 6, 1900– 10-11 12 As amended April 28, 1904--- 12-13 To encourage the development of coal deposits in Alaska, approved 13-14 Controller Railway & Navigation Co., to construct bridges, etc., ap- 205-206 Regarding Panama Canal 2 per cent bonds securing circulating notes, 146 Panama Canal 3 per cent bonds, approved August 5, 1909- 146 178-181, 229 Regarding transportation of merchandise by water from one port of 227 Extending provisions of act of August 4, 1852, to all public lands in 227 227-228 Addenda : Forest Service, letter regarding Chugach National Forest, with re- 681-707 Department of Commerce, letters regarding Controller Bay, Cor- 707-710 710 710-711 White Pass & Yukon Railroad, letter of O. L. Richeson, president 711-715 Callbreath, J. F., letter in re leasing of coal lands in Colorado__ 715 716 Haight, James A., telegram from, regarding construction of Alaska 716 Agriculture and stock-growing possibilities, statement of chief of insu- 39-41 Alaska Central (or Alaska Northern) Railway Co.: Cost of coal to Navy Department.... 403 Page. Alaska coal problem, statement of T. P. McDonald, prepared as part of 111-127 --- Alaska Railroad Commission's report: Market for Alaska coal_ Objections to Controller Bay as a terminal.. -- 76-80 Estimate (No. 8) on branch from Bering River coal fields to Cor- 196-197 Coastwise laws relating to foreign bottoms, opinion of Attorney General George W. Wickersham changing interpretation___ 178-181 Commerce and customs business of Alaska__ 576-578 Controller Railway and Navigation Co.: Act authorizing company to construct bridges, etc__. Coast and Geodetic Survey, letter from, re Cordova Bay and Cordova 628 Eminent domain (citation from 6 Am. & Eng. Enc. Law, 515). Extract from statement by M. A. Knapp, chairman of Interstate Com- Glaciers in Alaska.. Government ownership and construction: Extract of statement by Edwin Pratt, in re Australian railways__ 204-205 Interstate Commerce Commission, opinion on bills S. 48 and S. 133_ Meyer, George von L., former Secretary of the Navy, testimony of, re- 351-354 204 206-208 418 417 290-299 Panama Railroad, statement of Frank Trumble, on Government opera- 191-192 Resources of Alaska, testimony of ex-Secretary of the Navy Meyer---- 290-299 Act of August 4, 1852__. 227 Extending provisions of above act to all public lands in the Terri- 227 Land laws of the United States, 1880_ 227-228 Ryan, Richard S., bill proposed by, for construction of railroads aided 206-208 Sherman antitrust law, indictments for violations of.. Tonnage and freight in Alaska, from report of Alfred H. Brooks (from LBO13 |