The Terminus of Alaska’s Thirty-five Million Dollar Government Owned Railroad System
----— B a - The Gateway
The Gateway A to the
to the ' ft Kenai, Knik, Broad Pass
0rM,^^ds UWil* JM
- --- - „ LARGEST ALASKAN CIRCULATION
unramss»ENTS bring results ___published daily except slm>a_ ■■—-...'■
" Ten Cents the Copy
\ol N„ ;|s SEWARD. TnE GATEWAY TO ALASKA, TUESDAY, AUGUST 3, 1915.-------- ---
MAYOR SAYS
COST IS LESS
THINKS FlGl’RE OF $HO,000 GIVEN
BY CITY CLERK WILL
NOT BE NECESSARY.
Mayor Myers doubts that the cost
of running the city for the present
year will be sixty thousand dollars,
the amount estimated by the city clerk
and assessor. The mayor says he
went over the figures with another
member of the council and as far as
he could see then the municipal ex
penditures will not be more than forty
five thousand. He also thinks that
the assessments on some of the prop
erty are out of proportion to their
actual value and he very frankly and
openly says that something will have
to be done. While speaking on this
matter it must be said that Mr. Myers
always speaks without having ulter
ior motives in view. He says just
what he thinks is right anti in this
case he believes the whole matter
must be taken up more carefully for
the best interests of the taxpayers.
When the equalization board comes to
meet some strenuous times are ex
pected. Some of the property is as
sessed in a manner that ought to
make us all feel like Rockefellers or
residents of the wealthiest city on
earth per capita.
VALDEZ* NOTES AFTER FIRE.
All the records of the Granite mine
were destroyed in the fire.
Trouble has arisen with business
people because the mayor and chief
of police have tried to close Wall
street. The difficulty apparently
arises over the question as to who will
do the rebuilding work on the dock.
The city evidently objects to the re
building by the Dock company.
FLOODS AND FIRE ON
COPPER RIVER RAILROAD.
From private advices received here
within the past few days it has been
learned that the worst floods on
record have just visited the Copper
River railroad and covered the tracks*
for miles. Much of the track and
right of way is believed to have been
cashed out completely. A fire has
also destroyed a big bridge on the
road.
FRENCH SOLDIER FROM
NOME TELLS OF WAR.
Rene Haas, a well known young as
sayer and engineer of Nome, is now
fighting in the French ranks in Alsace
and in one of the last mails writes to
Dr. Sloan telling him all he can. The
young Frenchman says a doctor ought
to feel quite at home in the trenches
as “there is plenty of cutting and
carving” but he goes on to say “not
on me yet”
INTRODUCE NEW’
HEALTH ORDINANCE.
A new city health ordinance has
been introduced. At the meeting ot
the council last night it came up and
the general opinion of those who have
read it is that it is a first class one.
It makes many desirable rules which
the people ought to know. At the
meeting E. 0. Sawyer asked that the
Electric company be given permission
to put up a pole or two to carry wires
to his house and that of Phillip
Hickey. After a discussion the per
mit was granted.
STRIKE DECREASES OUTPUT
FAIRBANKS, July 16.—Several
hundred Russian laborers held a
meeting here last night and voted
that unless the operators agree to
pay their scale of $5 a day of eight
hours they will go to Seattle. The
operators are not likely to meet the
demand. E. M. Keyes, a big opera
tor in the Chatanika district, offered
$5.50 a day for ten hours, but the of
fer was declined.—Empire.
Councilman Frank E. Youngs left
for Cooper creek this morning.
CHAIRMAN EDES
i WARNS AGAIN
SAYS LOTS OF MEN HERE BI T j
WORK WILL BE DONE ON
ALASKV NORTHERN.
In a letter which was received some
f time ago by all of the members of i
Congress, Chairman W. C. Edes of
the Alaska Engineering Commission
warned the senators and represent
atives from the various districts of
the United States against a possible
stampede to Alaska by persons look
ing for work. The letter reads as
follows:
“As you doubtless have many in
quiries from your constituents con
cerning the proposed government rail
road in Alaska, asking how the work
is to be carried on and what method
should be pursued in applying for a
position in connection therewith, a
brief statement of the conditions may
be of value.
“The work this season consists, first
in completing the surveys. For this
purpose live locating parties, consist
ing of from 15 to 20 men each, have
been put in the field. Each of these
parties contain two or three technical
engineers of experience with a com
plement of rodmen, chainmen and ax
men.
“Secondly, some construction work
has been started and is being carried
on mostly by station men, these be
ing associations of a few men who
form a partnership to grade short
stretches of work and who do the
work themselves. A small supervis
ing force of engineers and foremen is
necessary. This work is under the
general supervision of members ot
the commission. In addition to this a
few men are employed directly by the
commission in establishing terminal
facilities, unloading freight, etc.
“Later in the season some work
will be done in repairing the Alaska
Northern railroad, lately purchased
by the government.
“A large number of applications
has been received for all positions
connected with the work and it is im
possible to consider but a small frac
tion of them. All the engineering
position^ have been provided for and
it is unlikely there will be any va
cancies. Not more than two or three
construction trains will be in sendee
this season and these will require all
other branches of the work.
“We can therefore offer but little
encouragement to applicants. There
are already many men in Alaska cap
able of serving in all the various posi
tions, many of whom will have to be
disappointed in getting work. Posi
tions are made by appointment and
are made solely on the base of merit.
Appointments do not come under civil
service. All applicants should ad
dress the Alaska engineering commis
sion at Seward, Alaska ,statipg posi
tion desired, experience and giving
references. Respectfully yours,
“WILLIAM C. EDES, chairman.”
CORDOVA RAILROAD
IS CLOSED DOWN.
The Cordova railroad has been clos
ed down until the repairs to the road
bed and the bridges can be made.
The recent high water washed away
parts of a number of bridges and for
22 miles the road is under water. In
most of the places the water was
slack and little of the railroad gTade
was washed away, in other localities,
however, the road was carried away.
It will be several weeks before the
road k> in operation again.
THOMAS MAGILL DIES
AT SOLDIERS* HOME.
Thomas MaGill, a sourdough of Al
aska who came into the Territory
some forty years ago died recently at
the old Soldiers’ Home at Orting,
Washington. MaGill was an honor
| ary member of the Valdez Igloo of
Alaska, and lived in Valdez up to a
year ago.
START WORK ON
GIG AJ. HALL
FOUNDATION BEING STARTED
FOR BUILDING THAT WILL
BE 100 FEET LONG.
Having come to the final conclusion
that Seward will soon be a large city
that will require spacious halls for
entertainments and meetings, the
Arctic Brotherhood camp has started
work on the foundation of a building
that will be forty feet by one hundred
in size. A special meeting of the
Brotherhood will be held this evening
at which the organization will prob
ably take the final steps for going
ahead with the work to a finish. The
building will consist of a great hall
which will be used for public meet
ings, dances and lodge purposes.
•> •> •> <r <» •:* •> <• •> ❖ ❖
❖ KENAI ALASKA MINE *
❖ MILL IS RUNNING. *
The mill on the Kenai Alaska mine
is now operating and enough ore is in
sight to keep it going for the whole
season. The mill began operating
last Thursday but no cleanup has yet
been made.
ANSWER SEWARD PETITION.
An answer has been received by the
Commercial Club from Colonel W. P.
Richardson to the petition for a road
around the head of the bay and
bridges over the creeks. The colonel
says the matter will be taken under
consideration but he doubts if any
thing can be done this year.
LEELANAW WAS CAPT.
DANIELS’ OLD COMMAND.
The freighter Leelanaw, sunk by a
German submarine July 25, was the
last command of Capt. Jimmie Dan
iels, now pilot on the Jackling yacht
Cyprus. She was last in Southeast
ern Alaska waters two years ago.
COMMISSIONER’S RECORDS.
Arthur M. Churchill to Sidney An
derson, lot 32, block 9.
L. H. French to Sunrise Dredging
Co., two claims on Sixmile creek.
Charles E. Herron, records for two
placer claims on Bear croek.
Jack Johnson, records bench claim
Cooper creek.
The baseball players left this morn
ing on the Alliance for Anchorage.
As the boat will remain there but a
day they will not be able to return on
her, but they will come back over
land.
Frank Ballaine has awarded a con
tract to Frank H. Doolittle for the re
pairing and putting into shape of the
“Third Avenue bunk house.” It will
be used for a store and rooming
house.
FIFTY AT WORK
[ ON RAILROAD
....
DOUBLE TRACK OVER LOWELL
CREEK AND CONTRACT FOR..
PILES AT MILE ONE.
Fifty men are now on the payroll
working on the Alaska Northern rail
road and if signs count for anything
the number will be very much iiT
creased soon. A small gang was put
to work yesterday to prepare for put
ting in a double track across Lowell
creek for a distance of about live
hundred feet and a contract is now
being let for piling at Mile One for
eight hundred feet of bulkhead. Men
are also at work taking out the old
track that was destroyed by the fire
The old iron of the cars, etc., will be
straightened out and the whole thing
cleaned up.
%• •> •> •> ❖ <*
* NO DISPATHCHES FROM *
* THE OUTSIDE TODAY. *
* - ❖
No dispatches arrived from the out
side today owing to some interruption
in the service around Sitka.
DESTROYER FLOTILLA
REACHES SITKA.
SITKA, July 24.—The United
States torpedo boat Flotilla, consist
ing of the Paul Jones, the Stewart,
Perry and Preble, arrived this morn
ing from Bremerton. They will de
part July 20, after coaling here, for
Kodiak and Dutch Harbor. They will
receive coal at the latter place from
the Justian, and thence they will sail
August 10th for Kiska. They will re
turn to Dutch Harbor and take on coal
again and sail direct to Sitka, where
they will arrive August 30. They will
take on coal again at Sitka and re
turn to Bremerton via the inside pas
sage.
The flotilla is due at San Francisco
exposition September 30. Empire.
A mixed party was last night given
in celebration of the birthdays of Mr^
McNeer and Mr. Hickey at the homP
of the latter. Those w ho did not care
to dance played cards and a prize w as
awarded to the one having the high
est score. Miss Sylvia Sexton won
this prize. To the tune of a Victrola
the many young couples present spent
a very enjoyable evening dancing.
About the midnight hour a very
pleasant lunch wras served.
The surveying of the government
tract is fast progressing. Much in
terest is being show’n by the people of
Seward in this work on the Federal
townsite and in the sale which will
soon follow.
The twTo Messrs James and their
friend Mr. Smith have left town for
a few days. They have gone out the
line a few miles to look over some
mining properties.
RAILROAD SOON
TURNED OVER
D. M. STEWART, RETURNING,
TALKS OF MINING AND OF
THE WAR.
Duncan M. Stewart, of New York,
one of Seward's pioneers and best
friends, is back in town after an ab
sence of nearly two years, and he had
some interesting things to say about
the prospects of this town and or
Alaska generally. To the Gateway
Mr. Stewart said:
“Seward is on the map, and it is
there to stay and to become increas
ingly important as time goes on and
the development of the great hinter
land progresses. I have heard a
great deal about the possibilities of
other places along the route of the
government line of railroad detract
ing from Seward, but there is noth
ing substantial in that. As a matter
of fact, the Pacific terminus of this
great trunk road will be benefited in
exact ratio to the development of the
interior towns along the route. An
chorage, Chicaloon, Nenana, and pos
sibly one other important center of
activity in the Broad Pass district,
will be feeders to Seward, which na
ture as 4/ell as the United States gov
ernment selected as the great com
mercial entrepot of Central Alaska.
So far from being jealous of these
places, we should stand shoulder to
shoulder with them, encourage and
help them by every means in our
power, especially by setting them a
proper example of civic pride, ente»
prise, good business ideals, and high
moral standards. I believe that in
Seward we shall have the real me
tropolis of Alaska, and that in itself
involves a responsibility which I hope
and trust we shall fully realize and
live up to.
“I expect to see active operations
on the line from here to Kern creek
just as soon as the government ac
quires physical possession of the
property.”
Mr. Stewart then went on to say
that he had no doubt whatever about
the government taking over the line
between here and Mile 71 and put
ting it in shape for traffic; he said
there was great dissatisfaction
among the bondholders of the Alaska
Northern, who w'ere the owners of
the property, because of the ridicu
lously low price at which the govern
ment had acquired it, but he consid
ered that their grievance was not
against the government but against
their own representative, who hav
ing been duly authorized to act for
them, made a bad bargain. “The
bondholders are the real sufferers,”
said Mr. Stewart, “and I am genu
inely sorry for them, both as a banker
who dislikes to see capital get the
> worst of it in any new country, but
especially as a Seward resident, be
cause in reality we owe the present
development by the government to
these bondholders, who by furnishing
the money in the first place put Sew
ard on the map and explored the vast
natural resources of the Matanuska,
Susitna and Tanana valleys.
Speaking of Alaska generally, Mr.
Stewart said that “because of the
publicity now being given to the
country by the building of a govern
ment enterprise, which he predicted
would be second only in magnitude to
the Panama canal, was causing in
numerable inquiries about possibili
ties for capital. Mexico and South
America,” said he> “have been happy
hunting grounds for capitalists for
(Continued on Page Six)
STATEMENT BY
VALDEZ BANK
—
' OFFICIALS GIVE FULL ACCOUNT
OF REASONS FOR
SUSPENSION.
In the Valdez Miner of Sunday last
a statement is given by the Valdez
Bank & Trust company which seems
to show that the institution is in a.
perfectly solvent condition. The fol
lowing is the statement:
Valdez, Alaska, July 31, 1915.
To the depositors of the Valdez Bank
& Trust Company:
Some time ago the stockholders
and directors of the Valdez Bank &
Trust Company, decided to liquidate
their assets, pay off depositors and re
tire from business. The cause for
this was the limited field of activity
and the general business depression
throug-out the territory. This plan
was being followed out when the lire
put upon us a sudden drain for cash,
and made collections difficult because
of the lack of cash in town. This
afternoon it was decided to close the
bank. The banking board of the ter
ritory has been notified and the wind
ing up of the bank’s affairs will be in
its hands.
The bank has deposits which must
be paid to the extent of $16,000.00.
As security for this amount there are
loans amounting to $38,000.00; bank
building of the value of $12,500.00;
equipments, stocks and other invest
ments of the value of $6,000.00. In
addition there is liability on the part
of the stock holders to the extent of
the full capital stock, $25,000.00.
The affairs of the bank will in all
probability be in such shape that de
posits will be paid off within thirty
to sixty days. Now that the bank has
been closed, payment of these deposits
is not dependent upon the collection
of loans, but upon the disposition
thereof, a much speedier method.
From the foregoing it can be seen
that the bank is solvent and we ask
your patience and cooperation.
Signed, M. F. HENDRICKSON,
Assistant Cashier.
VALDEZ, July 31.—The directors
af the Valdez Bank and Trust com
pany today closed the bank. t or
some months the officials have been
considering going out of business.
The move to close the bank is made
as the simplest method to clean up
the affairs of the bank, collect its
notes and pay off its depositors. The
matter of winding up the affairs of
the company will take but a short
time. The bank’s deposits total $16,
000, and the depositors are protected
by loans of $38,000. The Seattle
Hotel and Bank building, worth $12,
500, stocks and other investments to
taling $6,000, together with a liability
on the part of the stockholders for
the full amount of the capital stock,
which is $25,000. A statement by
the bank officials will be made in the
Miner tomorrow.—Prospector.
PLANS UNDER WAY TO
WORK MILE 4 PROPERTY
Plans are now under way for the
operation of the Mile Four quartz
property and the preliminary ar
rangements are being made with the
creditors of the Brewer-Hayden prop
erty for the use of the stamp mill and
equipment. The arrangements for
the use of the mill are being made
through Harry Hoben.
finds rock with free
GOLD NEAR THE CITY
G. C. Fridell brought in a large
chunk of rock this morning with free
gold visible all over it. The rock is
from his property, the Bear claim,
about half a mile north of the city.
Other good prospects have been
found on the claim before, but this
rock is by far the best and gives big
promise.
Mr. and Mrs. C. E. Bade and their
daughter, Miss Dorothy Bade, have
arrived to make their home in this
city.
VILLA TELLS U. S.
TO GO TO HELL
LEADER OF REVOLUTION CON
FISCATES, KILLS AND
GROWS MIGHTY GAY.
EL PASO, August 2.—“Whom the
gods would destroy they first drive
mad,” is a quotation that might be
used to account for the absolute
recklessness which General Villa is
now showing in his conduct of the war
against Carranza. It is reported that
he has confiscated all the stores in
Chihuahua, has deported the foreign
merchants, jailed forty-two Mexican
merchants, executed six people who
dared to protest, and he has crowned
it all by declaring that if “the United
States didn’t like it the United States
can go to hell.”
If all the accounts of his conduct
received here can be credited he has
started out on an amazing rampage
in which he exhibits an absolute care
lessness about public opinion in either
country. Care is being taken first,
however, to make sure that the re
ports are not being exaggerated by
his enemies for the purpose of secur
ing the aid of the United States in
bringing him to his knees.
MAN WHO SAVED FRANK S
LIFE IS IN ALASKA.
Governor Slaton Tells Remarkable
Story to Juneau Paper
About Affair.
By Earle C. Jameson.
JUNEAU.—“I am glad Leo Frank
is out of danger, after the assault on
his life at the Georgia state prison at
Milledgeville, and I’ll tell you a re
markable coincidence about that
story,” said former Governor John M.
Slaton of Georgia, when he arrived in
Juneau Saturday night on the steam
ship City of Seattle, on which he and
Mrs. Slaton are making a round trip
between Seattle and Sitka.
“You will remember that Frank’s
jugular vein was partially severed by
the convict that attacked him,” Gov
ernor Slaton continued. “When Frank
was taken to the prison hospital, ac
cording to the press dispatches which
I read, another convict, a Dr. Mc
Naughton, was called to attend him,
and, as developments have shown, he
undoubtedly saved his life. A year
ago McNaugton, one of the best sur
geons in the South, was found guilty
of murder in the first degree, on cir
cumstantial evidence, and he was sen
tenced to be hanged. After studying
the case, I commuted the sentence to
life imprisonment, as in the case of
Leo Frank. It was a stroke of good
fortune for Frank, that McNaugton
was in the prison, otherwise I think
the attack on Frank would have prov
en fatal.”
SENATOR TILLMAN IS
THE MAN COMING NORTH.
Some days ago the news was pub
lished in the Gateway from the out
side that Benjamin Tillman is com
ing to Alaska on a visit. There was
nothing to show that the visitor might
not be the Senator’s son who was here
last year as secretary to Chairman
Edes of the railroad commission but
from exchanges just to hand it is
learned that the coming visitor is the
famous senator himself. Senator
Tillman is chairman of the senate
committee on naval affairs and is al
so a member of the mining, appropri
ations and other committees, so his
visit may be of importance.
JOHN ROSENE SEVERELY
HURT IN AUTO ACCIDENT.
SEATTLE, July 26.—John Rosene,
pioneer of Alaska, originator of the
“Northwestern” companies and for
the last several years promoter of* the
“Alaska Midland railroad” from
Haines to the Tanana, and Miss
Bertha Heutis, a Seattle school teach
er, were seriously injured yesterday
when their automobile upset as they
W’ere returning from Mount Rainier.