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CONSTRUCTION OF RAILROADS IN ALASKA.

FRIDAY, MAY 2, 1913.

COMMITTEE ON TERRITORIES,
UNITED STATES SENATE,
Washington, D. C.

The committee met at 10.30 o'clock a. m. for the purpose of considering the bills (S. 48) to authorize the President of the United States to locate, construct, and operate railroads in the Territory of Alaska, and for other purposes, and (S. 133) to provide for the construction of railroads in Alaska, and for other purposes, as follows:

[S. 48, Sixty-third Congress, first session.]

A BILL To authorize the President of the United States to locate, construct, and operate railroads in the Territory of Alaska, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States is hereby empowered, authorized, and directed to adopt and use the name “Alaska National Railways," or any other name or names of like character, in his discretion, by which to designate the railroad or railroads to be located, owned, acquired, or operated under the authority of this act; to employ such agents or agencies, in his discretion, as may be necessary to enable him to carry out the purposes of this act, such agents or agencies to be appointed or designated by him or under his direction; to authorize and require such agents or agencies to perform any or all of the duties imposed upon him by the terms of this act; to detail and require any officer or officers in the Engineer Corps in the Army or Navy, or any official in the civil list of the United States, to perform service under this act without additional pay, but upon allowance of actual subsistence and traveling expenses; to locate and designate a route or routes for a line or lines of standard-gauge railroad in the Territory of Alaska, not exceeding seven hundred and thirty-three miles in the aggregate, to be so located as to connect one or more of the open Pacific Ocean harbors on the southern coast of Alaska with the navigable waters of the Tanana, the Yukon, or the Kuskokwim Rivers, in the interior of Alaska, and with a coal field yielding coal sufficient in quality and quantity for naval use, so as best to aid in the development of the agricultural, timber, coal, mineral, or other resources of Alaska, and the settlement of the public lands therein, and so as to provide adequate and suitable transportation for coal for the Army and Navy, of troops, arms, and munitions of war, of the mails, and for other governmental and public uses; to construct and build a standard-gauge railroad or railroads, with the necessary sidings, switches, and spurs along such route or routes as he may so locate and designate, not to exceed said seven hundred and thirty-three miles in aggregate length; to reserve from the public domain or to purchase or otherwise acquire all real and personal property necessary to carry out the purposes of this act; to exercise the power of eminent domain in acquiring property for such use, which use is hereby declared to be a public use, by condemnation in the courts of Alaska in accordance with the laws now or hereafter in force there; to acquire rights of way, terminal grounds, and all other rights, and to exercise all the powers granted to railroad companies under and by virtue of the act of Congress entitled "An act extending the homestead laws and providing for right of way for railroads in the District of Alaska, and for other purposes," approved May fourteenth, eighteen hundred and ninety-eight, and all amendments thereto; to purchase or otherwise acquire engines, cars, and all other necessary equipment sufficient to fully equip the said railroad or railroads for the performance of the work of transporting freight and passengers in the usual manner of railroads; to build or otherwise acquire docks, wharves, terminal facilities, offices, car

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shops, machine shops, warehouses, and generally all structures needed in the full equipment and operation of such railroad or railroads; to fix, change, and modify rates for the transportation of freight or passengers, to receive compensation therefor, and generally to perform all the usual duties of a common carrier for hire; to make and estabfish rules and regulations, not in violation of law, for the control and operation of said railroad or railroads; to employ agents, servants, trainmen, clerks, and superintendents for the conduct of the business of said railroad or railroads in the usual manner and to fix their compensation and pay their wages; to contract and to make agreements such as are usual and necessary in the management and conduct of the business of railroads; to have and exercise all the powers herein conferred and all other necessary powers granted by law or usually exercised by citizens or corporations in building or operating railroads which are necessary to enable him to carry out the purposes of this act; to lease the said railroad or railroads after completion upon such terms as he may deem proper; to operate the said railroad or railroads until the further action of Congress; to lease, purchase, or otherwise acquire any other line or lines of railroad in Alaska, or any part or portion thereof, upon such terms as he may deem proper; to make contracts or agreements with any other railroad or with any steamship company for joint transportation of freight and passengers and for an equitable division of the freight and passenger charges thereon: Provided, That the Interstate Commerce Commission shall have as full power and authority over all matters connected with said railroad or railroads as it has by law over other railroads, and nothing in this act shall in anywise limit its powers or duties in respect to said railroad or railroads, or any line of railroad or other means of transportation to, from, or in Alaska; to transfer any tools, equipment, or other property belonging to the United States and used in the construction of the Panama Canal, or other Government work, and no longer needed for such work, from such completed work for use on such railroad or railroads in Alaska, and no charge shall be made therefor, but credit may be taken for the fair value thereof by the department having purchased and being charged therefor; to withdraw any public lands along the line of said railroad or railroads, or at any terminal thereof, by Executive order; to cause the same to be surveyed and platted into lots, blocks, streets, alleys, and public grounds; to dedicate the streets, alleys, and public grounds to public use, and to sell the lots therein to actual settlers and occupants who will settle thereon and build homes or structures for trade or business; to make rules and regulations to govern the sale of said lots and to issue patents in fee simple to such as are so sold; to sue or be sued in the name of "Alaska National Railways" in any cause of action existing or arising out of or connected with the location, building, equipment, or operation of the said railroad or railroads, or of any duty or power arising from or under the provisions of this act, in the district where the cause of action exists or arises, and service upon any acting agent in the employ of the said "Alaska National Railways," or employed under any of the provisions of this act, in Alaska or whereever the cause of action exists, shall be deemed sufficient to confer jurisdiction; and it is the intent and purpose of Congress through this act to authorize and empower the President of the United States, and he is hereby fully authorized and empowered, either personally or through such agents or agencies as he may appoint or employ, to do all lawful acts and things, in addition to those specially authorized in this act, necessary to enable him to accomplish the purpose and object of this act. SEC. 2. That the President of the United States, or the Secretary of the Treasury upon the order of the President, is hereby authorized to borrow on the credit of the United States from time to time, as the proceeds may be required to defray the expenditures authorized by this act, such proceeds, when received, to be used only for the purpose of meeting such expenditures, the sum of $35,611,000, or so much thereof as may be necessary, and to prepare and issue therefor coupon or registered bonds of the United States in such form as he may prescribe, in denominations of $100, $500, and $1,000, and payable fifty years from the date of issue, and bearing interest, payable quarterly in gold coin, at a rate not exceeding three per centum per annum; and the bonds herein authorized shall be exempt from all taxes or duties of the United States, as well as from taxation in any form by or under State, municipal, or local authority: Provided, That said bonds may be disposed of by the Secretary of the Treasury at not less than par, under such regulations as he may prescribe, giving to all citizens of the United States an equal opportunity to subscribe therefor, but no commission shall be allowed or paid thereon: Provided further, That for the purpose of carrying out the provisions of this act, including the expense of preparing, advertising, and issuing the bonds herein authorized, there is hereby appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $1,000,000, to be used and expended as required under and according to the provisions of this Act, and to continue available until expended, but the said sum of $1,000,000 shall be reimbursed to the Treasury out of the first proceeds of the sale of said bonds.

SEC. 3. That there is hereby created a redemption fund in the United States Treasury, to be known as the "Alaska National Railways Redemption Fund," into which shall be paid fifty per centum of all moneys derived from the sale or disposal of any of the public lands in Alaska, or the coal or mineral contents thereof, or the timber thereon, and into which fund shall be paid the net earnings of said railroad or railroads above maintenance charges and operating expenses; the said redemption fund, or any part thereof, may be used from time to time, upon the order of the President, to pay the interest on the bonds authorized and issued under the provisions of this Act, and to redeem, cancel, and retire said bonds, under such rules and regulations as the President may establish.

[S. 133, Sixty-third Congress, first session.]

A BILL To provide for the construction of railroads in Alaska, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the President of the United States is hereby authorized, through the Alaska Railway Commission, hereinafter provided for, or otherwise, to cause to be surveyed and located such main lines for railroads from points on tidewater to the interior as will, in his judgment, best promote the settlement of Alaska and develop its resources, together with such branch lines as he may deem necessary; and when such line or lines are located he is hereby authorized to cause to be constructed, completed, and operated thereon (until otherwise provided by Congress) a standard-gauge railroad or railroads, with the necessary equipment, docks, wharves, and terminal facilities. That the President is authorized for the purposes aforesaid to employ such persons as he may deem necessary and to fix their duties, powers, and compensations.

SEC. 2. That to enable the President to construct the railroad and works appurtenant and necessary thereto, as provided in this act, there is hereby created the Alaska Railway Commission, to be composed of not more than five members, who shall be nominated and appointed by the President, with the advice and consent of the Senate, and who shall serve during the pleasure of the President, and one of them shall be named by the President as chairman of said commission. Of the members of said commission a majority shall be learned and skilled in the science of engineering, and may be officers of the United States Army and Navy, from the active or retired lists. Said commissioners shall each receive such compensation as the President may prescribe until the same shall have been otherwise fixed by Congress. In addition to the members of said commission the President is hereby authorized, through the said commission, to employ, in the ascertainment of the location of said railroad lines, and in the construction, completion, and operation of the same, any of the engineers of the United States Army at his discretion, and likewise to employ any engineers in civil life at his discretion, and any other persons necessary for the proper and expeditious prosecution of said work. The compensation for such engineers and other persons employed under this act shall be fixed by said commission, subject to the approval of the President. The official salary of any official appointed or employed under this act shall be deducted from the amount of salary or compensation provided for or which shall be fixed under the terms of this act. Said commission shall in all matters be subject to the direction and control of the President, and shall make to the President annually, and at other periods as may be required either by law or by the order of the President, full and complete reports of all their acts and doings and of all money received and expended in the construction of said work and in the performance of their duties in connection therewith, which said report shall be by the President transmitted to Congress; and the said commission shall furthermore give to Congress, or to either House of Congress, such information as may at any time be required either by act of Congress or by the order of either House of Congress. The President shall cause to be provided and assigned for the use of the commission such offices as may, with the suitable equipment of the same, be necessary and proper in his discretion for the proper discharge of the duties thereof. The commission shall acquire, by purchase or condemnation, all property it may deem necessary for the purpose of carrying out the provisions of this act, including any existing lines of railway, with the equipment, wharves, dock, bridges, and other facilities that it may deem desirable to secure in order to carry out the purposes of this act, and the power of eminent domain in Alaska is hereby conferred upon such commission, which may sue and be sued in the name of the Alaska Railway Commission. The President, through the commission, shall obtain an exclusive right of way over the public lands in Alaska for such railway lines upon filing its map of location in the General Land Office, and the President may, in this manner or otherwise, make reservation of such public lands for stations, terminals, and other purposes in connection with the construction and operation of such railroad

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