Heney had traveled to New York in 1909 to meet with Daniel Guggenheim and other board members about the railroad progress. On his return journey, he departed Seattle on 23 Aug. 1909 aboard the steamship "Ohio". On 25 Aug., the "Ohio" struck an uncharted rock and sank. Heney finally made it to Cordova on 18 Sept. On 30 Nov. 1909 the railroad reached the Tiekel River, completing the first phase of the contract. Heney made another trip to New York to turn over that portion of the railroad to the Katalla Company. On the return trip he spent the winter in Seattle. His health failing, Heney finally succumbed to pulmonary tuberculosis on 4 Oct. 1910.