Seward seaport record., 1954-10-01

it should run in the black instead of the red.
 Apparently Secretary Douglas Mckay shared this dissatisfaction and he had some ideas on how a Government railroad should be run. He felt that it should run, as nearly as possible, like privately owned railroad giving the maximum service to the customers with econ omy of operation wherever possible. To deliver this kind of operation he chose Frank Kalbaugh from the Southern Pacific, man who had been in railroading all his life.
 A little over a year ago Frank Kalbaugh arrived and in few short months he learned what had to be done and started doing 1t in a fashion which greatly impressed Congress.
 On February 2. Frank kalbaugh appeared before the Appropriations Subcommittee of the House with MT. William Strand. Director of the Office of Territories, who had previously spent three years in Al aska and had a good deal more than an outstanding interest and knowledge of the problems in the rail belt area.
 Mir. Strand presented to the Subcommittee appropriation re- quests which included $1i,994.OO0 for the Alaska Railroad, of which $2,9O0, ,0O0 was for construction of the Seward Dock, and $9,094,0OO for rehabilitation of the Seward-Port- age section of the railroad. He urged that the funds be approp- riated and pointed out to the Sub committee the importance of Sew ard and the Seward end of the Rail- road, both for the Military program in Alaska and for a sound Civilian economy.
 On February 8, MT. Kalbaugh and Governor Heintzleman spoke before the Subcommittee and the Governor urged that work on the Rehabilitation be started as soon as possible. MT Kalbaugh des- cribed the present condition of the railroad between Seward and Port age and explained why it had been both costly and hazardous to op- crate.
 Congress seemed to have been greatly impressed by the work MT. Kalbaugh had done and they ap- propriated not only the balance of the funds necessary to complete the dock, $2,9OO,000, but also provided approximately one half the amount necessary for the Rehabilitation work.
 And of greatest importance, they appropriated the rehabilitation funds as a supplement to the 1854 appropriation instead of put ting it in the 1855 bill. This meant -lss u! Iee6 lsomIe Jo Su!Aes ting the work done. The money became available immediately, and work could start with the opening of the construction season this year intead of having to wait un- til the season was half over.
 So this is the situation as it stands today with regard to Sew ard and the Seward end of the railroad. The Interior Department, under the New Administration has changed it's tune and is now sup porting the Seward projects and the continued growth of Seward and the Great Kenai Peninsula.
 Thanks go to Secretary Mckay, Mir. Tudor, Governor Heintzlemen, MT. Strand, MT. Kalbaugh and your own Seward men, who convinced Congress that the Dock and Reha- Utilization Programs were desirable both for the civilian economy and necessary from military stand point. All the money, $4,40O,OOO has been appropriated for the new dock. and since these people were able to secure $1,500,000 for this project last year, the planning has been completed and call for bids for actual construction has been made. Work should start early next year.
 In addition to that ,$4 ,594, ,0OO has actually been appropriated for the Seward Portage Rehabilitation and work is progressing and will con tinue. About four million dollars more will be needed to finish it, and I think it is safe to say that we are assured of Interior Depart ment support for this amount in the next appropriations bill.
 No longer does Seward live in the shadow of sword. The people can feel free to go ahead with building the community, attracting new capital and industries to de- velop the town and surrounding area to it's full potential.
 That, ladies and gentlemen, is the bright future of Seward, thanks to the changed attitude of the h. terior Department under the Re- publican A d m i n i tra a t 0 n, and thanks in the untiring efforts of