for the fiscal year 1923, the maintenance cost will be $722,240 for the line from Seward to mile 264, including the Matanuska branch, and $171,740 for the line from mile 264 to Fairbanks, including the Chatanika branch. Development of Traffic. Through the Land and Industrial Department, the commission until 1920 gathered descriptive and statistical data on the population, agricultural output, and general economic progress of the territory tributary to the railroad; furnished information to prospective home-steaders; and carried on such other activities as would ordinarily in a privately constructed railroad be under a traffic department. Following the reorganization of November, 1919, the Land and Industrial Department was placed directly under the Southern Division Office, and jurisdiction in these matters. for the Northern Division was assigned to the Engineer in Charge. Doubt as to the commission's statutory authority to engage vigorously in traffic promotion activities and lack of appropriations for these purposes prevent the development and execution by the commission of a constructive plan to populate the country through which the railroad passes and to promote the establishment of local industries.10 The most important activities relating to traffic development are those connected with the establishment and management of townsites, details of which have been given in Chapter I. The policy of expenditures for townsite purposes has been recently abandoned by the commission, and it is gradually withdrawing from its townsite activities. Thus the town of Anchorage has been incorporated and the commission no longer supervises its management. The public utilities, however, have not been taken over by the town, and the commission furnishes light and power. 10 This matter awaits the general reorganization of the administration of national property and interests in Alaska, which is now under consideration by Congress. See House Hearings before the Committee on Territories on H. R. 5694, 67 cong. 1, sess. (May 1921). The first sale of lots under the regulations took place from July 10 to 17, 1915, at Anchorage, and others followed from time to time as the railroad advanced through the country. On May 31, 1919, the number of lots sold in each locality and the amounts paid were as follows: As to the disposition of these revenues, the act of March 12, 1914, provided that any revenue from the lease, sale, or disposal of public land should be covered into the Treasury of the United States as a miscellaneous receipt. But to reimburse the commission for expenditures made by it for public purposes in the towns and to provide for whatever additional expenditures would be required in this direction, by an act of April 17, 1917,11 fifty per cent of the proceeds from a At Seward there were two tracts of land owned by the Government which were within the incorporated limits of the town. During the summer of 1915 these tracts, known as the Federal and Cliff Additions, were subdivided into lots. Sales of lots within these additions were held on September II and September 21, 1916. The regulations for the sale of these lots were different from those in the towns where the Government owned all the property. To avoid complications in the matter of taxes, street assessments, etc., these lots were sold outright, half the purchase price to be paid at time of sale, the balance being due in one year. There are no restrictions or conditions in the sale. The payments are required within one year in order that patents can issue and the town be thereby enabled to tax the lots as soon as practicable. 11 That until June 30, 1918, not to exceed 50 per centum of the moneys received from the sale of lots or tracks within any townsite or townsites heretofore or hereafter sold pursuant to the provisions of the act of March 12, 1914, entitled "An act to authorize the President of the United States to locate, construct, and operate railroads in the Territory of Alaska, and for other purposes," may, in the discretion of the Secretary of the Interior, be set apart and expended within the respective townsites in which such lots or tracts are sold, for the purpose of preparing the land for occupancy, the construction, installation, and maintenance of public utilities and improvements, and the construction of public-school buildings, under such terms and conditions as the Secretary of the Interior may prescribe, and the moneys so set apart and designated are appropriated for the purpose of carrying these provisions into effect; Provided, That such moneys as may have been heretofore or may the sale of townlots, until June 30, 1918, was granted to the commission. On July 31, 1917, the Secretary of the Treasury issued a warrant for transfer and appropriation of $82,184.32 from "proceeds of townsites" to the "cost of construction and operation account." This lot fund was utilized for the building of school houses; to meet expenses of local government; to pay for the improvement of streets and sidewalks abutting on municipal and federal property, and for general public welfare. The following statements of expenditures to Dec. 31, 1919, in the various townsites, showing the method of reimbursement, indicate the magnitude of the work in the administration of the townsites: EXPENDITURES BY THE ALASKAN ENGINEERING COMMISSION IN TOWNSITES TO DECEMBER 31, 1919 hereafter be expended for such purposes under and by authority of the Alaskan Engineering Commission from the funds at its disposal shall be reimbursed from the amount designated for the purposes herein provided: Provided, further, That a report of the expenditures hereunder shall be made to Congress at the beginning of each regular session.11 The commission attempted, without success, to have this provision in the acts of appropriation for the two succeeding years. a Including fire protection, sanitation, streets and sidewalks from beginning of town to June 30, 1919. b Including $208.73 for engineering and supervision. c Including $263.09 for bridge construction. METHOD OF REIMBURSEMENT TO ALASKAN ENGINEERING COMMISSION FOR a Including deferred payments amounting to $11,928.63 in 1920. b Of which only $555.94 is available from the lot fund, leaving a deficit of $264.62. c $7,749.92 available for future expenditure. CHAPTER III ORGANIZATION The Alaskan Railroad Construction Act imposed no restrictions upon the President in the choice of means of executing the purpose of the act. It was thus made possible to prosecute the work of construction free from most of those restrictions normally associated with a government enterprise of this nature. It was fortunate that there was this freedom of action and that no specific organization had been prescribed by Congress; for the project involved four different stages, for each of which changes in organization were necessary to effect the best adaptation to the requirements of the work in hand. In the first stage, from the date of appointment of the commission to the beginning of construction, the work was to make the investigations and surveys, and an organization was set up which was deemed best for this purpose. Three districts were created, each under administrative direction of one of the Commissioners, the first covering the region south of Knik Arm, the second extending northward to Broad Pass, and the third covering the section north of Broad Pass. Eleven fully equipped parties were organized for reconnaissance and survey in these districts. The second stage from April to December, 1915, covers the period when the commission organized for the work of construction. By Executive Orders of April 10 and April 30, 1915, the supervision and control of the entire project was vested in the Secretary of the Interior, as completely as if “said work had been placed by law under the jurisdiction and control of the Department of the Interior." The Secretary, however, allowed the commission general freedom of action in location and construction, and was guided almost |