The Daily Alaska empire., 1947-08-25
New Southern
 Terminal for
 Alaska Route
Fire Island, Near Anchor : aqe, Announced as Sea-
 Land Transfer Point
By yERN HAUGLAND

WASHlNGlON, Aug. %. - fl-- Frank Heintzleman. Chief of the Alaska Forest Service, said today the Federal Government will call for bids October on eight billion board feet of pulp timber near Thomas Bay, Alaska.
 Because of the huge investment that would be involved-$3 .000, 900 to $40,000, ,000-The Forest Service took the unusual step of calling for oral bids. the auction to be held here in the South Agriculture Building.
 Candidates will be screened-be- fore being allowed to take part in the auction---as to their financial resources, and knowledge of timber, water power and other operating conditions in Southeast Alaska.
 Each bid for the 50-year contract must be accompanied by a bank draft or certified check for $25,0O0. and the successful bidder must show evidence that he has at least s8,- 100000 for plant construction.
 Survey Party on Job
 Secretary of the Interior Krug told reporters one U. s. pulp paper firm already has survey party in the area and two other companies has survey teams on the way.
 The outlook is very encouraging. he said.
 Meanwhile Irwin w. Silverman, Acting Director of the Interior De- partments Territories Division, pointed out these additional indica- tions of forthcoming rapid develop ment of Alaska:
 l. The opening to homestead set- clement of 45,000 additional acres of agricultural land in the Matanuska Valley, in the Wasilla- Goose Bay region 48 miles from Palmer, head quarters of the present Matanuska project War veterans may start ap- plying Oct. IT, and the first grants will be made six months later.
 Highway Tracts
 9 The opening of 2,750, ,000 acres along the Alaska Highway for use as tracts of five acres or less for houses. camps, gasoline stations. res- turants, hotels and other facilities to serve and entertain motorists in Alaska. Settlement on these small tracts will begin Oct 2.
 3. Development of the Chilkoot War Veterans settlement during the past summer. One hundred families belong to the Alaska Cooperative Company which purchased the former Army camp a mile from Haines and 75 miles northwest of Juneau for $l05 900.
 4. Inauguration by Congress of a five-year, s340o0.000 program for the rehabilitation of the Alaska Railway.
 5. Increased agitation for state hood for Alaska.
 Silverman said the Alaska Road Commission is spending $3,753.000 this year for development of sys- tenn of highways in the Homer-Sew- ard area to stimulate agricultural development of the Kenai Penin- sula.
 Abandon Seward He added that the Seward-An- chorage line, the most expensive part of the Alaska Railroad to maintain, will be dismantled, and vessels from the south will proceed through the Cook Inlet to a new railway terminal at Fire Island. off Anchorage A railroad causeway will link Fire Island with Anchor age and the main line to Fairbanks. This will reduce the cost of sea transportation from Seattle by eli- minating the need to unload cargoes at Seward" Silverman said High 1 water transportation charges still remain major barrier toward rapid development of the Territory"