Valdez daily prospector., 1915-02-02
BELIEVE GOVT WILL
 BUY ALASKA R. R.
(Continued from page 1.)

l figures in it's possession, Secretary Lane would have been talking terms with MT. Morgan before this.
 "The secretary's remarks on this score indicate that the work of the Alaska engineering commission is not to be considered complete with the making of its report about Feb. 1. It is to have another season in Alas ka. If 1t goes north to value the Copper River & Northwestern, it probably also will go to direct what ever construction work is to be un- dertaken.
 Alaska Northern Different. But the situation as to the Alas ka Northern is quite different.
 Secretary Lane is much less com municative in regard to the Seward road than in regard to the Cordova road. Everything points to the fact that he has been reading David Ha- rum and applying some of the lessons to be found therein to his dickering with the Canadian bondholders who are making the offers.
 Tt appears that when the Cana dians talk to him about the advantag- es of the Alaska Northern to the government, he begins to talk about the magnificent opportunity to get short mileage from the Matanuska coal field by building from Portage bay. And yet it is believed that he wants the Alaska Northern, but on ly if he can get it cheap. Also he is said to be relying much on that clause in the railroad law which pro- vides that the government may con- demn existing railroads.
 Stand On Legal Advice.
 "The Alaska Northern people, how ever, have received legal advice to the effect that the clause is a dead letter. This advice is that if the government sought to condemn mere ly for military purposes, such as haul ing out coal for naval use, there could be no question as to it's right to condemn, but when it seeks to condemn a common carrier merely to make it common carrier under government ownership, then it runs counter to the constitution, as set forth in numerous decisions on the point.
 Moreover, so lawyers say, if the government created a rival line that destroyed the possible business of a privately-owned common carrier, that act also, as demonstrated by numer- ous decisions of the court of claims, would constitute a taking of private property for public use without due compensation having been made, as provided in the fifth amendment to the constitution.
 "So the game between the .Secre tary of the Interior and the Cana dian bondholders progresses.
 But meantime Secretary Lane is having facts marshalled in the com ing report of the Alaskan engineer ing commission to demonstrate that the government can in measure be independent of the Alaska Northern. Portage bay is one of his best argu- ments. It is reported that he has estimates that the tunnel from Port age bay could be constructed at a cost of not to exceed $2,000,000, and be completed within two years time, bringing the road out at the base of Kenai peninsula at a point which re- quired seventy-two miles of construc- tion on the Alaska Northern to reach.
 "If terms are not made soon with the Alaska Northern-and it looks very much as if the situation was to be permitted to drag-there is a strong possibility that the summers activity in the western part of the territory will be confined to one and possibly two things.
 The First Step.
 "The first of these is the construc- tion of the governments own new line from Ship creek to the Matanus- ka coal field. It is calculated that Cook Inlet, by which Ship creek is L. ~vaI %n orr{. gation at least six months year, and possibly eight months. The lat Ter figure has been given to the sec retary. Reports only a few days old from Cook Inlet are that the inlet has been open so far this winter, and free to navigation, but it is admitted that this is an unusually mild win. ter.