The Daily Gateway newspaper in Seward reported the progress of the Alaska Central Railway to its readers on October 13th, 1905. The workers had reached mile 40 of the track bound for Anchorage.

The first miles of track were slow and tedious, but speed gradually increased to approximately a mile every three days. But, as the railway reached mile 40 at Placer River Valley, it came to a complete stop.

At this point, a tunnel had to be dug out. This tunnel, Alaska Railway Tunnel No. 1, had to be excavated by hand as mechanical means were not yet available. Construction of the track would not begin again until 1906.

This tunnel would be used by the railroad until 1951 when the track was re-aligned.

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