--—— VALDEZ, ALA3KA, WEDNESDAY, MAY 12, 1915. NO. 121.
VOL. 1S. _ _ . .. _ _ _
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BERNSTORFF SMS
GERMANY RIGHT
Presents Note To Bryan Upholding
His Government's Right To
Sink Ships In War Zone.
WASHINGTON, May 12.—The Ger
man ambassador, Count Bernstorff,
today presented to Secretary of State
W. J. Bryan a formal note in which
the German government, announces
that the commanders of all subma
rines have been instructed not to
harm neutral vessels and that in the
event of an unavoidable mistake the
German nation will make prompt res-’
titution for any damage or loss.
The note, however, formally denies
the responsibility of the German na
tion for any losses to neutral or
belligerent vessels operating in the
prohibited zone which surrounds the
British Isles and from which, by
proclamation of the kaiser, all ves
sels must remain away, ohterwise the
German government will not assume
any responsibility i for losses in this
. prohibited zone.
The notice practically causes a
deadlock in the diplomatic correspon
dence between the two nations, as the
United States insists that ships must
be stopped and the commanders of
the submarines board the vessels,
make an inspection to convince them
selves that the boats do not belong
to a neutral nation, and can be sunk
only after the lives of non-combat
ants have been properly safeguarded.
This is the provision which the Ger
mans refuse to concede, claiming that
no vessel has the right to sail where
the Germans have established the
war zone.
THE RUSSIANS EVACUATE VISTULA TRENCHES
___
ALASKA NORTHERN
Secretary Lane 1 Reported To Have
Demanded Clear Title To Road
By June 1 or No Sale
SEATTLE, May 12.—The govern
ment, through Secretary of the In
terior Franklin K. Lane, yesterday
notified the owners of the Alaska
Northern railroad, which is construct
ed from Seward, Alaska, that unless
they come to some agreement re
garding the ownership of the railroad
and are ready to show by June 1st
that I he title is clear, the govern
ment will cancel its contract for the
purchase of the railroad for $1,150,
000.
The news reached here yesterday
as the men interested in the own
ership of the road are now in this
city. Boland, the attorney who en
gineered the deal, is in this city, but
refuses to make any public state
ment. The bondholders are also si
lent, but indicate that they are well
satisfied with the announcement from
Washington claiming that under the
present arrangement they were as
good as outsiders and would not se
cure any of the money, hence
their suits to establish the rights
they claimed in the railroad.
Alaskans here believe that the
government will not. spend one cent
on the railroad until the title is
cleared up and that all work will be
from Sh'p Creek (or Anchorage) to
the Matanuska cdal fields.
The last papers front the outside
show that copper was Quoted at 21
cents a pound.
VIENNA, May 12—The Russians
have been finally forced to abandon
the extensive trenches constructed by
them along the Vistula river near its
head waters. The Russians are fall
ing back in Poland and are evidently
changing front, abandoning the pres
ent campaign in tho Carpathians to
protect themselves in northern Po
land and In the Baltic provinces.
Austrian Success In Galicia.
In western Galicia the Austrian
troops continue successful and the
enemy are being driven back con
stantly. I
Russian Counter Attacks.
The Russian commander in south
west Galicia has been making many
desperate counter assaults on the
Austrian position in an effort to check
the advance which threatens the en
tire Russian campaign in the Car
pathian mountains.
Russian Carpathian Offensive Resum
ed.
The Russians in the Carpathian
passes have resumed an extensive of
fensive, hoping by one desperate bat
tle to push forward into Hungary.
The Austro-German troops holding
UK WITHDRAWS
WATER RIGHTS
WASHINGTON, May 12—The De
partment of the Interior withdrew
65,000 acres of land in the Iliamnaj
district, fearing that many water-pow
er sites may be in the region with
drawn and would fall into the hands
of speculators and promoters. The
withdrawal was made today by the
secretary.
WILSONS NOTE TO GERMANY
Will DEMAND EXPLANTION
- i
KAISER’S GOVERNMENT TO BE ASKED TO EXPLAIN THE SINKING
OF AMERICAN STEAMER GULF LIGHT, THE SINKING OF THE
BRITISH MERCHANT SHIP FALABA AND THE LOSS OF AMERI
CAN LIVES, THE FIRING OF BOMBS AT THE AMERICAN SHIP
V CUSHING, THE SUBMARINING OF THE LUSITANIA AND OTHER
VIOLATIONS OF INTERNATION AL LAWS GOVERNING WARFARE
—TUMULTY SAYS PRESIDENT’S POLICY IS DECIDED UPON.
WASHINGTON, May 12—President
Wilson is preparing a strong note to
the German foreign office demand
ing an explanation for the sinking
of the British merchant steamer Fala
ba, which was unarmed and carried
no munitions of war and the passen
gers of which, including several Amer
icans, were drowned; also an expla
nation for the attempt to destroy the
American steamer Cushing, which
was fired on repeatedly by German
aeroplanes, although the ship was fly
ing the American flag and its sides
were covered with an immense Amer
ican banner and had painted in big
letters the name of the vessel and
the fact that it was of American reg
ister; a demand for an explanation
of the reason for the sinking of the
American tank steamer Gulflight with
tlie loss of five American lives, in
cluding the commander of the ship,
who was not given time enough to
leave his vessel and seek safety in a
small' iboat—a condijion similar to
the sinking of the merchantman Fala
ba, The president’s note will al
so demand in no uncertain terms for
the reasons, if any, that the German
government has for the sinking of
* jtb^^usitania, which, as a merchant
ship and under international law,
could not be sunk except by cap
ture and at least not until the pas
sengers had been given time to leave
the ship.
U. S. Never Admitted Germane Right
To Sink Neutral Veeeelt.
The president’s note will again in
form the German government that
the United States has not admitted
the right of the Germans to attack
American, vessels in the war zone, nor
to endanger the lives of Americans
on unarmed merchant vessels of any
nation, belligerent or otherwise, ex
cept where such boats are visited,
searched and non-combatants remov
ed | before the sinking of the ships.
The president will insist that Ger
many adhere to the rules of inter
national warfare.
What action will be taken- by the
United States in the event of a re
fusal of the German nation to admit
its fault cannot be ascertained by
reporters at this time, but it is fully
'realized here that President Wilson
will stick to his demands that Amer
ican lives cannot be sacrificed either
on American ships or merchant ves
sels and Germany get off without
trouble from the American nation.
Tension In United States Is Great.
The tension in this city ,is still
very great and it is .realized that ev
ery possibility exists that/ war may
result because of the popular demand
in the United States that American
rights, as outlined by the president,
shall be respected by the Germans,
wbo appear as equally determined to
uphold the right to sink any vessel
found in the war zone.
Wilson Policy Determined.
WASHINGTON, May 12.—Tom Tu
tnulty, private secretary to President
Wilson, announced today from the
White House that President Wilson
had fully determined upon the course
to be persued by the United States
(Continued on page 3.)
AUSTRIAN OFFENSIVE GAINING G ROUND IN POLAND AND IN WEST
ERN GALICIA—RUSSIANS MAKING DESPERATE COUNTER AT
TACKS IS REPORTED FROM VIENNA—RUS8IAN FORCES STILL
TRYING TO BREAK THROUGH CARPATHIAN PASSES BUT ARE
BEING CHECKED—THREE TURKISH BATTLESHIPS. SUNK IN
*
BLACK SEA BY CZAR’S WARSHIPS — AUSTRALIAN SUBMARINE
SUNK IN DARDANELLES—YPRES BATTLE STILL CONTINUES.
the passes at Lupkow and Uszok
have been forced to withstand one
of tjhe most desperate assaults yet
made by the enemy. The fighting
started yesterday and continued all
through the night. The Russians have
suffered heavy losses but continue the
assaults. The natural strength of the
foils and the disadvantage of the
Russians are such that military ex
perts predict the utter failure of the
campaign to push into Hungary.
Austrian Press Justify Lusitania
Sinking.
The press of this city justifies the
sinking of the merchant vessel Lusi
tania, which, it is claimed here was
armed and thus became a converted
cruiser. It is also charged that the
boat carried munitions of wa'r and
that Americans had been warned not
to sail on the ship.
Austrians Protect Frontier.
BELLUNO, Italy, May 12.—Italian
refugees from Austria report that Aus
trian troops have fortified the entire
frontier, even building entrenchments
of concrete and cement behind which
have been placed cannon of large cal
ibre. Officers are said to have de
clared that if the hostilities are be
gun they will raze the villages near
est their lines from Selva (east of
Lake Garda in Italy) to Laste, (Italy,
20 miles to the north of Salva.)
Turkish Ships Sunk.
PETROGRAD, May 12.—'The Rus
sian Black sea fleet succeeded in
sinking three Turkish warships to
day. The ships were trying to reach
Constantinople when overhauled by
the Russian fleet and sunk. The loss
of life on the Turkish boats totals
500.
Turks Sink Submarine.
1 CONSTANTINOPLE, May 12 —
The war office today announces that
ITAUARS STILL
DEMANDING WAR
Mobs Parade Streets of Rome—News
papers Are Strongly for Ital
ian Intervention.
ROME, May 12.—The people are
parading the streets demanding war.
The failure of the negotiations be
tween Italy and Austria are admitted
and the people insist that King Vic
tor Enranuel start the conflict at
once in order that Italy may reap
some of the benefits of a successful
war.
An energetic campaign is being
conducted in the Italian press on be
half of the Allies. Every day there
appear telegrams from Petrograd
yarning Italy that if she does not
soon intervene she will lose every
thing. It is said the Allies have de
cided to give nothing, in case they'
are victorious, to a neutral power
which, in the words of Jules Cambon,
the French diplomat, ‘‘rushes to suc
cor the victor.”
The newspapers also publish long
reproductions from the French press
stating that Italy’s participation in
the war is imminent. Dispatches
from London say the Italian ambas
sador there, Marquis Imperiali, is
about to sign with Sir Edward Grey,
the British foreign minttsten, an
agreement containing clauses which
provide that Italy shall side with the
Allies.
Although dispatches from Berlin
and Vienna on this subject are more
guarded, on account of the censor
ship of the press of those cities, ef
forts are being made to offset this
campaign. Representatives here of
the Berlin and Vienna newspapers are
most active, and seek to convey the
impression that every necessary meas
ure 'will be taken to prevent Italy
from abandoning her neutrality. It
is affirmed in the end that Austria
will be convinced of the necessity of
making suitable territorial conces
sions, even if Germany is compelled
to compensate her by ceding terri
tory in Bavaria or Silesia.
Petit Jury Discharged.
Judge P. M. Brown today discharg
ed the petit Jury with the exception
of those members who are now hear
ing the case against the United
States marshal's office which was
brought by Albert Fagerburg. The
Fagerburg case was before the court
all of today.
ALASKA ROAD
BUILDER IS BACK
Secured Appropriation of $165,000 for
Season’s Work—Tried To Get
$200,000.
Colonel W. P. Richardson, chairman
of the Alaska road commission, re
turned to Valdez last night on the
Admiral Evans. When seen by a
I representative of the Prospector the
I road builder stated that congress had
passed an appropriation of $165,000
for the road work for the next sea
son and that the season’s work will
be planned by the members of the
commission in a few days.
In discussing the appropriation by
congress. Col. Richardson said:
.“We had hoped to secure the
$200,000 so badly needed for road
work in Alaska, and it looked for
a time, towards the end of the ses
sion, that we would be allowed the
larger amount, in spite of the fact
that the government was seeking to
hold down all appropriations. The
sum was finally cut to $165,000, which
was an advance of $40,000 over the
original bill, which carried an ap
propriation of $125,000 for repair and
maintenance of the military roads.
“I have tried hard to impress upon
the members of congress the great
need of more roads and trails in
Alaska, which would result in a
greater measure of development to
the north and which would aid, not
a small section of the territory, but
would help the miners and prospect
ors in every division of Alaska. The
commission would like greatly to un
dertake the building of the many
roads and trails so urgently needed
and which investigation has proved i
should be built, but without a more
liberal appropriation we are power
less.
“Congress is willing to help the
people of the north in spite of the
heavy demands made by other sec
tions of the United States upon the
national treasury.”
Miss Utter, accompanied by her
mother, arrived on the steamer Mari
posa this morning direct from Min
neapolis. Miss Utter will become the
bride of Mr. Elton E. Merrifleld on
Saturday evening next.
Mrs. Esson left last night on the
Admiral Evans for Hobo bay to join
her son, Charles - Fowlkes, who is
bookkeeper and assayer for the Gran
ite Gold Mining company.
the Australian submarine which was
part of the fleet of Allies warships
.operating against the Dardanelles was
seen approaching and was located by
aviators trying to push its way
through the line of mines to reach the
inner harbors, but was blown up by
bombs dropped by the aviators.
Anti-German Riots In London.
LONDON, May 12—So intense is
the feeling in this city because of the
sinking of the Lusitania that the po
lice were unable to control the mobs
which gathered about the shops own
ed by Germans, but which have been
closed up for many months. The
buildings and the contents of the
stores were wrecked. The looting oc
curred in the east end of London.
Inquiry Into Falaba Sinking May 20.
The official inquiry into the sink
ing of the steamer Falaba will be
held in this city on May 20th. Wit
nesses have been called and the sur
vivors of the ill-fated ship are here
to testify.
Ypres Fighting Conntiues.
PARIS, May 12.—The fighting in
vContinued on page 2.)
GERMAN HOMES
AREJSTROIED
LIVERPOOL, May 12.—Mobs yes
terday wrecked the buildings in this
city which were known to belong to
Germans. The police were powerless
to preserve order. The friends of
the many members of the crew of the
Lusitania, many of whom were from
this city, pushed aside all resistance
and smashed many buildings and de
stroyed the furniture.
COL. SWANITZ FEARS NO ROAD
WILL RE RUILT FROM SEWARD
SAYS PREFERRED CLAIMS AGAIN ST ALASKA NORTHERN WILL USE
UP ALL THE GOVERNMENT HAS AGREED TO PAY FOR THE
ROAD AND IN CONSEQUENCE THE BONDHOLDERS, WHO PAID
$1,000,000 IN CASH, WILL GET NOTHING AND ARE PREPARED TO
FIGHT THE SALE—TORONTO BANKERS HAVE PUT UP BIG BOND
TO GOVERNMENT GUARANTEEING THE TITLE TO THE ROAD
SEVERAL MORE SUITS EXPECTED.
“With preferred claims of $1,000,000
against the Alaska Northern railroad,
and the bondholders who have In
vested $1,000,000 In cold cash In the
financing of the road forced to be
satisfied with the $150,000 which.the
government will pay over and above
the $1,000,000 necessary to pay the
preferred claims if the present deal
Is carried through, the chances are
good that the Seward railroad will
never become the property of the
United States government.”
The above statement, made by
Col. Swanitz last night to the editor
of the Valdez Prospector, indicates
that the owners of the railroad are
not all of one accord and that the
deal for the westward railroad may
not bo concluded.
When shown the telegram received
by the Prospector late last night, in
which it is reported that the govern
ment had issued an ultimatum to the
owners of the railroad to settle the
question of ownership by June 1st or
the road would not be purchased, the
colonel said that it did not surprise
him and he outlined the conditions
of the sale of the road to the gov
ernment as follows:
“The preferred claims total $1,000,
000 and the associated banks, headed
by the Toronto bank, own but $460,000
worth of the claims, with $240,000
now held by O. G. Larabee, the form
er receiver of the Alaska Central,
and $100,000 held by W. J. Boland,
the attorney who made the deal with
Secretary Lane. These claim*) are all
to be paid before the bondholders se
cure any money for the $1,000,000
they advanced to the road and to
carry on the receivership which gave
the Alaska Northern tho railroad.
The associated hanks have agreed
with the government to give title on
July 15th, when they are to receive
$500,000 as a first payment, but they
cannot make the deal with the out
standing preferred claims, nor can
they convince the bondholders that
the small part of the total, or the
$150,000 which the bondholders are
to get, is enough for the $1,000,000
advanced by them many years ago
and on which they have never re
ceived any returns. The Toronto
Banking Syndicate have put up a
bond of $500,000 to guarantee title
to the government.”
Suits nave already Deen started u>
the bondholders to have the first re
ceivership set aside and the Alaska _
Central case reopened. The suit for
the townsite also complicates the sit
uation and may result in the build
ing tof the government road from
Anchorage to Matanuska and the in
terior, with Anchorage as the coast
terminal.
Captain Austin Lathrop, the moving
picture magnate of Southwestern
Alaska, who will control a string of
"movie” houses from Cordova to An
chorage, is in town today concluding
his plans for opening a show house
in Valdez.
The steamers Mariposa and Admir
al Evans took seventy-five tons of
freight and many passengers front
[this city to Anchorage.