Valdez Daily Prospector
PUBLISHED BY THE
Prospector Publishing Co.
TERMS.
Daily Prospector.
By carrier, per month.$1.00
By mail, per annum.10.00
The Weekly Miner.
By carrier, per month.$
By mall, per annum. 3.00
The Daily Prospector and Weekly Miner
by carrier to one address, per
month .$1.25
Tho Dally Prospector and Weekly Min
er by mall to one address only, per
year .$12.50
easiness Office and Editorial Rooms.
’Phono 152.
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MONDAY, MARCH 16, 1914.
LOOTING THE 'FRISCO.
Speculative banker-management!
That, in a word, is what brought the
'Frisco railroad system into insolv
ency. "The difficulties of the ’Fris
co,” says the Interstate Commerce
Commission, in reporting to the Un
ited States Senate the results of its
recent investigation, "were of a finan
cial and not of an operating charac
ter.”
This railroad was doing a good bus
iness. It traverses the rich and de
veloping great Southwest. In the fif
teen years between 1897 and 1913,
the gross earnings per mile of road
operated increased from $5,157 to $8,
306. The net earnings per mile in
creased during the same period from
$2,159 to $2,633. Yet in these fifteen
years a surplus of $331,065.94 that was
available for dividends was changed
into the huge deficit of $1,069,915.60.
In these fiften years, the interest on
funded debt had increased from $1,
994,488 to the enormous sum of $10,
684,788.55. Reports the Commission:
“An increase in traffic and operat
ing revenues had been secured, but
the benefits thereof had been absorb
ed by increased interest charges.”
High finance did it. A horde of
railroad magnates, bankers, promot
ers and their "inside” friends, swoop
ed down upon the treasury of the un
fortunate ’Frisco and turned its mon
ed into speculative enterprises, plac
ing millions upon millions into their
own pockets in the proceeding
They organized syndicates to build
small lines of frail road which were
later “unloaded” upon the ’Frisco at
an excessive cost. There was taken
from the treasury of the ’Frisco, in
this way. the pretty sum of approx
imately $62,000,000. For putting it
over, these railroad officials, specula
tive bankers and promoters (includ
ing Chairman I!. F. Yoakum of the
’Frisco board of ('directors himself, and
other directors and employees of this
company), took out as their private
and personal profits the huge total of
$8,444,796.51!
They strapped onto the back of the
staggering 'Frisco the stock of the
Chicago & Eastern Illinois railroad.
This resulted in a net loss to the
’Frisco of $1,710,388.
They proceded to acquire control of
the "South Texas Lines” which the
Interstate Commerce Commission
says was "a disastrous move for the
’Frisco.” It meant a loss to the ’Frisco
of over $8,000,000.
They gave financial assistance to
the "North Texas Lines” by permit
ting them to retain freight traffic bal
ances due the 'Frisco. Since the Com
mission reports that there is “but lit
tle promise that the ’Frisco can col
lect these amounts,” it appears that
there is another dead loss to the
’Frisco of over $2,000,000.
They “invested” $1,248,750 of 'Fris
co money in the Kirby Lumber com
pany—another loss to the 'Frisco of
about $500,000.
They "stuck” the ’Frisco with a
contract with the Crawford County
Mining Company, under which the
railroad was required to pay the min
ing company a certain rental for the
mere privilege of placing cars at the
mines and taking them away! Anoth
er loss to the poor 'Frisco of more
than $125,000. (Note: the Inter
state Commerce Commission reports
that “it is understood that the entire
capital stock of the mining company
is owned by the Chicago, Rock Island
a Pacific Railway.”)
They charged up to the ’Frisco
$180,000 per year as an “investment”
in the New Orleans Terminal Com
pany; yet the ’Frisco uses no termi
nals in New Orleans and gets no ben
efit from that "Investment.”
They paid dividends on ‘Frisco se
curities when there was no money in
(he ’Frisco treasury available for divi
dends. This they did to fool the pub
lic into thinking the ’Frisco was in a
prosperous condition. They wanted to
keep the way clear to pass off still
further security Issues upon the un
suspecting investors.
They charged up to the ’Frisco, in
the form of discount on bonds and
notes, the almost unbelievable sum
01 *:io,bbf>,749.82 net! Which led the
Commission to observe that the pay
ment of this “enormous amount of
discount in twelve years” wus indica
tive ,of banker-management—"that
bankers obtained ,the securities at
prices which may or may not have
been as high as could have been ob
tained from those not directly in
terested in the financing of the ’Fris -
co.” And remember that Mr. Yoakum
admitted on the stand that "the sys
tem of banking looks to the directing
influence of the railroads in making
investments and it is customary for
a railroad corporation to stay as near
the bankers interested as possible.”
Which meant that the railroad direct
ors let the "bankers interested” have
Frisco notes and bonds at a price
much less than par. The banks then
sold them to the public ai a higher
price. They got their profit, whatever
happened! Remarks the Commission:
“Within the widest possible range
'of reasonable charges to the public,
no transportation company, construct
ed and living upon borrowed capital,
can long survive a situation in which
it sells securities at 62 1-2 cents on
the dollar and pays interest on the
par value thereof. At 4 per cent the
$30,665,749.82 of net discounts and
commissions carried by the ’Frisco
represents an annual expenditure of
$1,226,630 for interest upon money
which it never received. The accounts
show that the securities were sold at
prices higher than those above quot
ed, but the commissions varying from
1 to 2 1-2 per cent, paid to the bank
ers, aggregated more than $3,000,000.”
4nd the Commission suggests that this
showed either a deplorably weaken
ed credit, "or an extravagant arrange -
rnent with bankers to whom large
profits accrued in the purchase of the
bonds and the subsequent sale of
same to the public.”
Here is what the Commission’s re
port has to say about the effect of
the frenzied finance that was applied
to the ’Frisco:
"The policy of the ’Frisco in the
acquisition of new lines at prices
greatly in excess of construction costs
and the sale of fits funded debt se
curities at extravagant rates of dis
count, including the payment of prem
iums on retired issues and commis
sions to banks and bankers on such
issues, the investment in stocks of
industrial companies on which no div
idends have been paid, the assumption
of heavy fixed charges for its Texas
lines as well as for the Chicago &
Eastern Illinois Railroad far greater
than its returns therefrom, and pay
ment of excessive charges upon the
investment in and use of terminal and
coal properties have resulted in the
net revenue of the 'Frisco being ab
sorbed by such charges in a sum
which approximates between $3,500,
000 and $4,000,000 per annum.” La
Follette’s Magazine.
Some Newspaper Efforts.
Don C. Seitz, business manager of
the World, addressed the students of
the school of journalism at Columbia
university recently. “Every now and
then,” said Mr. Seitz, “a man comes
along who wants to make a great na
tional daily. I wish he might, but
how can he? In this day of highly
developed press co-operation the
country paper prints practically all
the news that one finds in a city paper,
and consequently every paper makes
its appeal to the reading public on lo
cal issues. A paper in New York
city cannot make any impression on
Philadelphia, Washington or Boston,
and if it is impossible for one of our
big papers to get a circulation in any
of these cities how we can expect a
paper printed in New York to majee
an appeal in Chicago or San Fran
cisco?
"I know that this is true, because
the World has tried more than once
to make a showing in some of these
cities. I was asked once by a promi
nent man in Washington why we did
not make more of a certain measure
that was then before congress. It was
a big issue to the congressmen, and
this man thought we should play it
up. I asked him how many papers
he thought we sold in Washington.
He said 2,000, and I told him that
we sent only 300 down every day.
We also tried to create a field for the
World in Boston, and even went to the
expense of hiring a special train at
the cost of $700 a day. We sold ex
actly 300 copies of the Woijjd in
Boston each day that the train run.
I might say in passing that Boston
has the highest culture and the worst
newspapers in the United States.”—
New York Times.
At the age of 16 you can never tell
whether a girl is suffering from ma
laria or is merely in love.
Money makes the mare go. If you
bet on her she can usually be de
pended upon to run away with it.
If at first you donft succeed, guess
again.
HOMES OF THE SYRIANS.
Where It Is Little Trouble to "Take
Up Thy Bed and Walk."
On the right as you enter the house
stunds a small structure of sun dried
brick, called mckhdaab. It Is about
five feet high, six feet long and a foot
deep. On the inner side it is divided
into openings of different sizes and
serves the cosmopolitan purpose of a
china closet, kettle cupboard, a place
for father's Turkish pipe (nargile) and
tobacco and whatever other little ar
ticles It may be convenient for the
moment to thrust into It.
The maulcednh (fireplace) is at the
forward end of this structure. It is
such a fireplace as you would build at
a picnic—square, open at the top for
the kettle to set in and at one side to
admit the fuel, it Is built of clay mix
ed with straw and fine quartz. There
is no chimney. The smoke floats in
the house with the sufferance of pub
lic opinion. The ceiling is black and
shining, as if It had been varnished.
The earthen floor is painted frequently
with red mud and rubbed with a
smooth stone until it shines, it is fur
nished with straw mats, cushions and
In the winter season soft and fluffy
sheepskins.
There are no chairs, no bedsteads
The family sit and sleep on the floor.
The bed consists of a thick cushion
for a mattress, stuffed with wool or
cotton, a pillow of the same material
and a quilt for a cover. So when
Jesus said to the man he had healed,
“Arise, take up thy bed and walk,” the
man did not have very much to carry
In the daytime the beds are either roll
ed up, each one. In a heap and left on
the floor next to the wall or put In a
recess in the wall, constructed for the
purpose.—Atlantic Monthly.
TACT OF EUGENIE.
Diplomacy of tho French Empress on
• Question of Dross.
A curious instance of the diplomatic
methods of the ex-Erapress Eugenie
is worth recalling.
When Queen Victoria, Prince Albert
and the princess royal were about to
visit Napoieon III. and the Empress
Eugenie It wus feared at the French
court tiiut the youug princess royal
would not be dressed in a style that
would harmonize with French taste.
The question was how to beguile her
royal parents Into dressing the child
In a suitable tnauner.
In this difficulty tbe empress bad a
really brilliant idea. Tbe height and
other measurements of the princess
royal were obtained and a doll of ex
actly tbe same size procured. Tbe doll
was provided with a large and exquis
itely finished trousseau, and it was
then dispatched to Buckingham pal
ace us an imperial gift to the princess
The expected happened. Queen Vic
toria, enchanted with the doll’s ward
robe, transferred most of the outer
garments to her daughter for use dur
ing their visit to the' emperor and
empress. The result was that the
princess appeared at tier best, and ev
erybody was pleased!— London Spec
tator.
Criminals of Manila.
"Criminals are practically unknown
in.Manila," observed an official of that
city. "I mean by this that there is no
criminal class in the islands, ns there
is in European countries and in the
United States. The yeggman, the pro
fessional pickpocket and sneak thief
do uot exist there. Of course we have
to deal with high crimes, and there
are a considerable number of murders
Doubtless this is due to tbe mercurial
temperament of the people. The Fili
pinos are much like the Spaniards
They are easily angered and commit
murder in a moment of passion. The
spirit of revenge also is pronounced
among the Fillpluos. I have found
thut most of tbe murders committed
are traceable to that old motive—the
eternal triangle. 1 don’t recall any
murders in the Philippines that were
committed with gnus. The, weapon j
ordinnrlly used Is the knife or bolo.”—
Washington Post.
Woman’s Influence.
It Is at the foot of woman we lay
the laurels that without her smile
would never have been gained It Is
her image that strings the lyre of the
poet, that animates the voice in the
blaze of eloquent faction and guides
the brain in the august tolls of stately
counsel. Whatever may be the lot of
man. however unfortunate, however
oppressed, if he only love nud be loved,
he must strike u balance In favor of
existence, for love can illumine the
dark roof of poverty and lighten the
fetters of the slave.—Disraeli.
Ringless Weddings.
A wedding without a ring seems in
congruous, but in some parts of Spain
no ring is used. After the ceremony
the bridegroom moves the flower In
bis bride’s bair from left to right, for
in those districts to wear a rose above
your right eur is to proclaim yourself
s wife
8oothing the Bride.
“1 told Maud that Jack was simply
crazy to marry her, and she took of
fense.”
“Why was tbatV"
“Don't know, unless It was that
wben I said It they bad Just been
married’’—Boston Transcript
Whips at Weddings.
At Swedish weddings among tbs
middle and lower classes tbs bride
groom carries a whip. This Is an em
blem of his authority in the domestic
circle. .._ .
If people censure you unjustly tty
to feel as charitable toward these a*
you would if they praised yee toe
Ndh*
The 17th of Ireland
Calls for a Green
TIE, HAT OR SUIT
We have them or
any other kind of
a Tie, Hat or Suit
you want.
J,Suits From
$12.50 to $40.00
Our line of Blue
Serge suits is the
most complete in
town and are
Priced From
$12.50 to $35.00
Get a Tango Shirt for the
Dance- 'Something new.
GOOD GOODS
NOTICE OF ELECTION.
Notice is hereby given that; pur
suant to an order made by the dis
trict court of the Territory of Alaska,
Third division, in the matter of the
annexation of certain territory to the
incorporated Town of Valdez, the
common council of the Town of Val
dez has called -n election to be held
in said town and in the territory pro
posed to be ann xed to said town, on
Saturday, March 21, 1914, to determ
ine whether said territory shall be
so annexed as prayed for in the peti
tion therefor, tiled in said district
court as provided by law. The de
scription of said territory as set up
in said petition, is as follows, to-wit:
Beginning tit Meander Corner No.
1 of the Valdez townsite survey and
running thence south, 24 degrees. 19
minutes, 14 seconds east, 240.638 j
feet; thence south 03 degrees, 32:
minutes east, 1228.26 feet; thence j
south, 74 degrees, 52 minutes east. ;
568.26 feet; thence south, 45 degrees.
43 minutes east, 136.62 feet; thence
south, 30 degrees, 27 minutes west.
131.24 feet; thence south, 29 degrees.
12 minutes west, 123.42 feet; thence
south, 14 degrees, 45 minutes west,
51.95 feet; thence north, 61 degrees,
27 minutes east, 5000 feet; thence
north, 28 degrees. 48 minutes west.
2050 feet; thence south 61 degrees,
30 minutes west, £700 feet, to place
of beginning.
At such election qualified electors
are invited to vote upon said prop
osition to annex said described ter
ritory to the Town of Valdez by plac
ing upon their ballots the words “For
annexation to the Town of Valdez."
or “Against annexation 10 the Town
of Valdez,” or words equivalent there
to.
The polling place for such election
in the Town of Valdez shall be in
the hall of the common council on
Broadway avenue. The polling place
in the territory proposed to be an
nexed shall be in the ground flooi
room of the Fish building on McKin
ley slreet, adjoining the Tillikum
>.Trb. The polls shall be open from
9 a. m. to 6 p. m. of March 21, 1914
The election board designated foi
the Town of Valdez is composed of the
following persons: Judges—H. I’.
Sullivan, Louis Rosenthal, Thomas
Hunt; clerks — J. J. Cavana, Dan Wil
cey.
The election board designated for
the territory proposed to be annexed
is composed of the following persons:
Judges—Adam Swan, Oliva Maroise,
J. H. Bell; clerks—Frank Millard.
Robert Weber.
The qualifications of an elector en -
titled to vote at such election, pre
scribed by law, are as follows: He or
she shall be a male or female per
son of the age of twenty-one years
or more and shall be the owner of
substantial property interests In land,
building or improvements on land or
tide land within the said corporation
or the territory proposed to be an
nexed to or incorporated within such
corporation.
TOWN OF VALDEZ. .
By E. E. RITCHIE, Mayor.
RANDALL E. ASHBY,
Town Clerk.
First publication Feb. 20. 1914.
Last publication March 20, 1914.
Hospital of the Good Samaritan.
For $6.00 we will give you a ticket
entitling you to hospital service and
care for any eight weeks out of the
year from date of your ticket, when
Incapacitated by injury or. sickness.
Bee w H Ziegler.
CAMP VALDEZ No. 10
A-B
Meet ♦•very Tuesday evening at £ o'clock lr.
KakIc* Hall All members are mi jested tt
attend. T. (I. QUINN. ArcticChie!
s. MCNIICCK. Secretary
Local Valdez
SOCIALIST PARTY
Meets Thursdays at
8 o’clock at
the local quarters back of
Ingram & Bush’s Cigar Store
L. W. STORM. E. M.
Valdez, alaska
Reports on Mines
Patent Surveys
Genesal Mining Engine ering
Phone No 10a
Summons for Publication.
Tlieo. Emel, plaintiff, vs. \V. Fred
Swanson and F. A. Hancock, defend
ants.—No. 653. Summons for Publica
tion.
To the above-named defendant,
W. Fred Swanson:
You are hereby required to appear
in the district court for the Territory
of Alaska, Third Division, within
thirty days after the completion of
publication of this summons against
you, to-v/it, within thirty days after
the 28th of March, 1914; and answer
the complaint of plaintiff filed here
in, and unless you so appear and an
swer the plaintiff will apply to the
court for the relief demanded in the
complaint, decreeing her to be the
owner of the launch Anita, and that
neither you nor your co-defendant has
any interest in or title to the same.
Witness the Hon. Fred M. Brown,
judge of said court, this 13th day of
February, 1914. ARTHUR LANG,
Clerk of the District Court, for the
Territory of Alaska, Third Division.
By T. P. GERAGHTY, Deputy Clerk.
First publication Feb. 14. 1914.
Last publication March 28, 1914.
Notice to Creditors.
In the United States Commissioner’s
Court, ex officio Judge in Probate,
Valdez Precinct, Third Judicial Di
vision, Territory of Alaska.
In the matter of the estate of Peter
Steinmetz, deceased. W. A. Hystrom,
administrator.—Notice to Creditors.
Notice is hereby given by the un
dersigned, administrator of the estate
of Peter Steinmetz, deceased, to the
creditors of, and all persons having
claims against the said estate, to ex
hibit them, with the necessary vouch
ers, within six (6) months after the
first publication of this notice, to the
said administrator at the office of C.
E. Bunnell, at Valdez, Alaska, the
same being the place for the trans
action of the business of said estate.
Dated at Valdez, Alaska, this 10th
day of February, 1914.
W. A. RYSTROM,
Administrator of the estate of Peter
Steinmetz, deceased.
First publication Feb. 11, 1914.
Last publication Marob 16, 1914.
If you want all the news all the
time, read the Prospector.
PROFESSIONAL
Dr. H. COCKERILLE
Graduate of National University
lWashington,'D. C.
DENTIST
Phone 92 Fourteen years'ia
Office in Whaling building VALDEZ
Next to cable office
DR. GERMAN
PI,on, .» THE dentist
Office rooms over Owl Drug store. Office hours
9 a. to., to 6 i». rn.. 7 p. ui.. to 9 p. m. Sundays
by appointment All work guaranteed
DR. C. H. VANCE
THE
OSTEOPATH
Graduate'American School of
Osteopathy, Kikrsvllle. Mo.
OFFICE HOURS-} I* 12 a.. 1 to 5 p. a.. hr
appoint..at
Tr.aCk.iUiM, WalCTtrMt. FH0N£2t3
C. E. BUNNELL
ATTORN KY-AT-1. AW
Offices Wall Street
Phone 3» VALDEZ
E. E. RITCHIE
1. A \V V K K
pmonk:i;w Valdez, Alaska
F. butterworth;
’Civil Engineer and
U. S. Deputy Land and
Mineral Surveyor
Blue Printing Latouche, Alaska.
EO. F. WHITE
The Assayer
Assaying and Ore Testing
CORRECT RESULTS
No More, No Less
VALDEZ, ALASKA
Valdes Lodge
No 168
Free end Accented Masons
Regular Communications Hist Wednesday 10
each month in McKinley H-»ll Visitors always
welcome.
A. K. GRIGSBY, VV. M
C. c. Reynolds, Sec
If you want all ths now* all th'
tine read the Daily Prospector.