The Washington times., 1906-01-28
RAILROAD SUBSIDY
OPPOSED BY MANY
Question Forced to Front
by Burnham Bill.
FEAR GOVERNMENT CONTROL
Rival Interests Oppose Construction OF
Great Trunk Line. in Alaskan
Country.

The large question. whether the
United States shall revive the policy
| OF subsIdizIng railroads. is opened By
/ the consideration of tae Burnham bill
| taken up at length in ghe Senate Com
/ mittee on Territories. The bill looks 10
| the establishment of the great trunk
line, or main artery. from which the
| future Alaskan railroad system shall
/ develop. and it proposes that the credit
of the Government shall be pledged 10
meet the fixed charges on the invest
ment for nearly a generation.
Already objections have been aimed
against The measure by other companies
that dellare their willingness To build
such roads as the business of Alaska
Will justify. and that without Govern
ment aid. other objections 10 the bill
are pointed out Thus it IS urged that
the guarantee of 4 per cent interest on
$4,000 per mile for 525 miles of road
the guarantee 10 run for thirty years,
is eE7essive. 1t involves an obligation
of the Government amounting TO $3.50. -
OOO year for thirty years, or an aggre-
gate OF SlS-e90000 This IL is pointed
out. Is fairly comparable TO the loan
OF credit which the Government grant
ed to some OF the trans-continental rail-
roads and from which it escaped only
after a contest OF many years.
No Control Over Lines.
Another objection is based on the fact
that the Government will have no con-
troll over the branch lines which NAV
later be built by the company. This
recalls the case Of the Union Pacific.
which. under the Gould management.
once threatened 10 allow the Govern
ment To take the main line under it's
mortgage, and then TO build a new tine
parallel 10 the original main line, con-
meet 1t up with the branch lines, over
which the Government had no control.
and thus control the business and let
the Government hold the bag
John ROsene, of New York. an officer
OF a company which is planning TO build
a road paraiel to this one, and which
asks no Government aid, appeared be
fore the committee TO protest against
the passage of the bill. The rights
which are proposed to be granted are for
a line from COrdOva Bay. on the Gulf
OF Alaska. to Eagle: the Government TO
grant right Of way, land for stations
and terminals. and exemption from all
y
establish a telegraph and telephone line
along the road.
Against Government Control.
Mr.. Rosene urged that his company,
though it has accomplished little as yet
in the direction of construction, has
large sum invested. and cannot well
carry out its building project so long as
It is confronted with the possibility Of
competition with government-financed
rival
Andrew F. Burleigh spoke for the con-
cessionaires. and insisted that IL was
Impossible at This time 10 finance any
thing like a satisfactory system of roads
IN Alaska without Government aid; yet
he was positive that the guarantee
would cost the Government nothing in
the end. He discussed the wealth and
possibilities of the country.
Former Senator Turner. of Washing
ton, spoke against the measure, repre-
senting the Alaska Central road His
objections We're on much the same
ground as those urged by Mr.. R0sene.
The committee reached no conclusions.
and will give further hearings on the
subject.