The Alaska daily empire., 1915-01-27
AIAaKA RAILR0An
GOSSIP m CAPITAL

wAsHlNcTON.- Nov chat gossip is going about that tho government may purchase the Copper River & Northwestern railyoad md Che Alas l,a Northern railroad, the owners or those properties arc receiving ylsita and letters rom numerous persons in Washington to aid. on iibeEai com mission basis. In putting through the deals.
 ll is quite apparent that J. ?. Mor- gan. of the Alaska Syndicate. has not listened to the siren song of any oi these gentlemen. Wherein he is wise. Those who know Secretary Lane, who would have to do with tho nesotio- tions. know very we'll that if the gov ernment does decide to do any rail- road buying, the negotiations are to be conducted direct with tho princi. ples and not through any agents. it will be noted that Air Morgan has made three trips to Washington in person on the matter The Alaska Northern people for many reasons, are Keeping alool, but it is under stood that they are willing and even anxious to sell.
 "Who owns tho Alaska Northern?' is the question put to member of the Alaska engineering commission recently
 "All right. was the reply. Who owns che Alaska Northern? Whats the answer2 ] never have been able to find out"
 ln any dealing with that road the government would have to untangle considerable legal difficulties, for the ownership is somewhat clouded. The property itself is now in tho hands of trustees named to protect the bond- holders. The bonds. aggregating some four or five million dollars. were among the assets of the Sovereign Bank Of Canada and with ,he other assets Of that institution, were taken over by @ group of twelve Canadian banks and have been placed by them in a holding company This holding company is made up largely Of the representatives of the twelve banks. It would appear then, that the banks are the ones with whom to deal, and they are reported to be getting decid- edly interested in the situation, hop ing to realize on the bonds.
 It is learned here that while the Alaska engineering commission has made no valuation of tho Copper Riy- CT & Northwestern, as previously stated in the PostIntelligencer it yet has secured an estimate as to the cost of putting the Copper River and North western and the Alaska Northern trackage in firstclass condition. These figures are said to be between S400,- 900 and S5OO0OO for the Copper River & Northwestern and $250.000 for the Alaska Northern.
 The high figure on the Alaska Northen-considering Its mileage is due to the fact that the road has been idle SO iong Nevertheless the opinion prevails here that tho Admin israGon win ask of this Congress the full sum necessary to purchase both roads outright A great deal of preliminary work would have to be done before any deal could be com pieted and an appropriation at the long session beginning next December, ! would come In ample time.
 The authority to purchase existing lines of railroad in Alaska is given to the president in the following portion of the act
 ITO purchase, condemn, or other wise acquire upon such terms as he may deem proper any other line or lines of railroad in Alaska that may be necessary to complete Che construc- I tion of the line or lines of railroad designated or located by him; proyid- ed that the price to be paid In case of purchase shall in no case exceed | the actual physical value of the rail-. road"
 Members of the house committee on ] naval affairs have become greatly in- terested in Alaska by reason of the glowing report Secretary Daniels made of tho Maryland tests of the Matan- usRa coal. The whole naval coal prob. lem has been very much before the committee. and much attention has been paid to tho high cost of trans porting Atlantic coast coal to the Pa cific for use by the fleet there. While i the Panama canal has operated to re- duce that cost materially. the com mittee sHll feels that the coal bu for Che Pacific is high, and Is anxious to secure the early opening of Alas. kan coal fields for naval purposes.
 The assumption among several of the members of this committee is that the government will strike for the Matanuska coal fields in its first railroading operations. and the idea of these members is that it is to be reached from the Susitna, presumably through the Seward gateway and the Alaska Northern. But the members admit that they have nothing trgible upon which to base their assumptions. -(Ashmun Brown Seattle Post-ln- 
 A. Shyman returned yesterday from 3 business trip to Southwestern Alas Sa.