»■ . ‘I*1 , I
11 ""' ‘ ^' * t SEWARD THE PLACE
COME TO SEWARD j i ! FOR YOU TO
OPPORTUNITIES MAKE YOUR HOM1 j
HERE ARE MANY j I
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Daily Edition, and The Alaska Weekly Post
SEWARD. ALASKA. MONDAY, MAY l‘>, 1919. TEN CENTS PER COPY
VOL1 ME \m N1 MB1 R ____—_ —__ . - ■ ■ ..
—Kx poet at ions of resident s of Was -
ington. Alaska. Oregon and other goM
mining states, that the next Congn -
is going to pass a bill authorizing t e*
payment of a subsidy lor the produc
tion of gold seem to he d >omed to d »
appointment.
The above is the opinion of .1. .1.
Cndevwood, sp» rial eorresj>ondent e»
tho Seattle Times in a p>* a disp.it n
to has paper from Washington, U. t •.
under date of Aptii PdtN
Many big mining plants tha‘. a
no longer able to produce gold at
profit because or the increased e* -t
of labor and material v ill doubtless
be converted to other u-«*« or junked
The crushing plants that are in dose
proximit> to sprue*' rorests may '**•
converted into pu'p mills, and it is
morally certain that unless ‘here ?s a
heavy drop in the price of labor an 1
material there will he Tn the next
ft»w vears. a 1 cr« a e«l oroduction ot
gob! on the Pacific Coast an*! a \\ s‘’\*
increase*! production of paper pu*o.
A bill providing for the payment
of a gold-production subsidy was in
troduced at th* last so si »n. but it
iu;ev k* .uas the c^mmittc.*
Arrangements have be n made to a*. '
the measure reintroduced at the com
ing session and there was some hop*'
that it would pass.
Arguments ror n :i.
The arguments for the bill aro that
American gold is wor'.U more abroad
than at home: other countries are
paying a premuim for it; that the cost
of everything used in the product’on
of the metal—dynamite, acids, too’s,
food. labor, drill st.? I and other com
modities— have all greatly advance.I
in cost, while gold remains at the
same standard price— roughly ? *u
an ounce.
As a result of these cond tier -
many low-grade gold p >po.-itior < s
uated in the Western states have been
compelled to close down, rhcy cor.
no longer produce gold a‘ a pro* it. A
subsidy of 40 p*‘r cent was ashed in
order to prevent many quartz mdl
from going to the junk piles. This, i*
was contended, was not equua ent o
the increase in the cost of products I
but is was sufficient to enable a m:r
ber of big projects in which nv Tor.
of dollars are invested in machinery
development and equipment, to keep
running at a small margrn or pror:.
England faces the same situation
Hundreds of min^s in Australia an
South Africa . which n< xt to \merirn,
are the two greatest gold-producing
countries on earth, were closed doer,
and a government committee we
appointed to investigate with a view
to arriving at a conclusion on th '
advisability, of paying a subridv.
After several months of study tV.
committee has advised against it.
according to advises just received
at the Department of Commerce.
Decides Against Mibsiay.
The committee agrees that
payment of the subs’dy woy d he?*)
the mining companies, ard perhaps
would keep a greater number
men employed, but it would be fun
damentally an economic blunder Tor
• England to pay, say. $23 for an ounce
of gold that it had to sell, when
used in foreign exchange. for $20
worth of foreign goods.
In this report lies the cmx of the
situation . If it would be poor busi
ness for Great Britain to pay $23 for
$20 worth of foreign goods, it would
be a greater blunder for the United
States government to pay forty per
cent more for gold than the metal
could be sold for in a foreign country.
In other woid> $100 of American gold
.voa'd !>u \ only $00 worth of foreign
goods. >
Th - argument, together- with the
c' hau .ivt r< * o t made by tin* Hrit
ish committee of experts, doubtless
will he use-1 by congressmen and sen
ator'- in whose states there are no gold
mining industries, and who are in i.
big majority in Congress.
Prejudice V gainst ^Subsidies.
Ihsides that, the prejudice against
th< p yment of subsidies to different
ii cHr t it s is becoming more and more
prone need, IW instance, a comnrit
?
’ tv told r* ••mbers of the Shipping
”* d tlur the fainting interests of
Pm 'MP fy w ouk! protest vigorously
•|*e ale of any government
they also molested against
the Kail road Adminis
tration had in mind.
The delegates were reminded in
very emt ha ic language that farmers
p c nted only a little more thar.
' v.v»n y.f v. per cent of the population
•** the T r»*ed States, and yet there
• nT .1 ,»;* ed Congress an ap
pioprititmn of $1,250.000,000 to guar
antee a ma ket price for their wheat
w!ii( h is away beyond its value in
I *v gn countries, and that this sub
*:dy involved the possibility of a tax
of on every marr. woman ana
child in the country.
There has been considerable con
g e :<>nal grumbling about the pas
rage of that wheat subsidy appropri
atior. avd appeals for an appropria
tion t » sub idize the gold mining in
dustry are likely to'fall on deaf ear s
Mining Men’s Hopes Blasted.
The hopes of the We tern mining
m> n wer* based on expectation thaT
the Riitish. committee would find in
favor of to. payment of a subsidy .!»
Great Brita n had agreed to it. there
as omc probability that the Unite.
States would do likewise. Condition
won' 1 then ho on somewhat of a
; a’ y in nearly all gold producin'*
o! it l ies. But those hopes a* e blasted
!i f*e repot just received. Tiie report
.ays in pait:
“Subsidy for the pollution <»f gold
app» ars to the committee to be fun
damentally unsound. Gold has been
dople ! a* the s andard of value be
causes by rea on of the operation ol
at 11 a! cau e. it is available in quan
itie> and at such cost of product too
n t< ms of other commodities is
directly influenced by the laws ot
:t !;, and demand. lYiiods of in
d g *1 . production, following Chi
the discovery of fuither deposits oi
«M capab e of extraction at a low
> r ave be n inarkpd by an increase
n tho price of commodities.
\\ ould Lose rurenasing I'ower
‘ The intention of the subsidy sug
r >t,'d by the gobi producers is to en
able gold to bo produced that would
oth. rwi p not — conformably with the
\ onomic law of supply and demand—
bo produced uf all. Other things be
ing equal, the result would be that
the purchasing power of the whole
world’s gohl supply would be dimin
■died. The value terms of gold of the
ommodities for which it is exchanged
would rise.
“It is undoubtedly desirable that
-on iderablo gold reserves should he
1 Id in this country, but in our view,
the most important function of the
gold reserve is that it should be
available for export at the standard
price when lequired to meet foreign
indebtedness. We think it essential
to preserve a free market in gold, but
• *
clearly it would not bo a business
proposition to do so it we bad to buy
gold at a high price in order to ex
change it at a lower price.
Trices Expect to fall.
“The London Chamber of Commerce
apprehends that prices may tall rapid
ly at peace, with disastrous results to
industry, and contend that it might be
in the public interest to take steps to
prevent the rapid fail in the prices of
commodities by stimulating the pro
duction of gold at the expense of tiie
taxpayer. VVc neither share their up
>rehension nor accept their contention.
We have no reason to believe that
there will be forthcoming from the
British Empire on a parity basis ia
much gold as we shall need for the
purpose of strengthening our re erves,
but in any case tin* additional amount
of gold that we can hope to secuie b>
subsidy would, in the opinion of oui
witnesses, be no advantage to thus
country for building up reserves un
less we can afford to keep it.”
With this report staring them in
the face, and the further lad that
the United States already has a large
gold reserve in the treasury— more
actual gold than any other country
in the world—the best that the West
ern gold mining men can expect is ::
ong investigation dealing with the
whole subject in its relation to otlie.
•ountries. This would drag on tor :t?
east a year.
In addition there is the conpres
ional prejudice apainst the subsidy
jlans of any kind. Kf forts have been
nade for more than twenty years past
o k t throuph a ship subsidy bill, but
ion ,toss has always voted it down.
Jndot the circumstances it would np
»ear that there is little promise of n
)ootn m pold mining for many years.
Three is hope, however, that in
nanv eases, the cost of equipment on
ow prade pold properties will not V
in entire loss. Those that have do*
eloped sufficient cheap electric powci
in.l are within reach of spruce for
sts, can he converted at slipht expert
»e into pulp mills that will yield just
is much profit as did the pold.
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.SEWARD SNAPSHOTS
I i
('apt. L. E. Gregory, third mem be«
I Hie naval commission now in the
lortn; accompanied by his wife anu
drs. M. T. Edwards arrived on tht
wdnriial Fanagut from Anchorage,
ihe three are registered at the Hole.
Seward.
o.ge Colwell came in on yesterday**
.air. from Mile 71 and will lemain
icre for several days.
Judge George T. Harlow is in from
•ui the line and is stopping at the Ho
el Seward.
Louis Johnston, the vetorn dog
nu her, has at .Mile f>:L and com.'
n. Mr. Johnston is a guest at the Ho
1 Seward.
The first picivc of the season wa
dd yesterday , Mr. and Mis. Jacob
an and son Sidney, ('apt. Harr>
whwuilz and Tom Osba went down
nc bay in J. L. Giaef’s yacht, which
* oon to be christened "The Glory a I
he Seas.”
I he city council will hold a regulai
os ion fonight in the Fire Hall at 8
>’clock.
Mr. and Mrs. Root entertained in
jrmnlly last night in honor of CapL
vi* die and Lieut. Aikman. Othei
ue. ls present were Mr. and Mrs.
V. H. McNrer, Frank L. *Ballaino,
ud'Te Whittlesey. Erich Lucas, Miss
'rancis Root, Elmer A. Friend and
Ir. J. M. Sloan.
Way no Wuo, agent of the Admiral
no. and A. H. McDonald, of Alaska
teamship Co., returned from Anchor*
go on the Admiral Farragut.
Aldoren Carlson sister of Mrs. Ot
o P lehlmann, arrived on the Admiral
'arrngut from Anchorage and wiM
os ihle remain here all summer visit
ing.
S. I.. Colwell came over from Sol
ovin on the Admiral Farragut on a
msincss trip.
Col. Rcvell, wife and three children,
a> od through on the Admiral Farra
ut this morning for the states, from
Vnehorage.
Gabriel Santos* little ward, Marion,
irrivcd on the Admiral Farragut this
norning and will remain in Seward
•nt il September, residing at the home
of Mr. and Mrs. Ed. Crawford.
A big black bull, Galloway breed,
KUT1I GARRISON IS
GOING TO THE INSANE
WARD AT WALLA WALLA
SEATTLE, May llJ— Ruth Gar
rison, found not guilty of tlu* al
leged poisoning of Mrs. Grace
Storrs, for love of the lutter's
husband , owing to the jury be
lieving that she was insane at
the time of the deed, was today
ordered to be sent to the insane
ward at Walla Walla peniten
tiary. It is reported that state
alienists are to examine her soon
to determine htjr sanity. The girl
may try for her freedom soon.
*i.*tt««:»-.**#****t<*4
was brought over from the experimen
tal station at Kodiak on the Admiral
Farragut and i.> to he sent to the Mat
anuska station.
H. C. Long, representing a furnace,
company in the states, accompanied by
his wife, are stopping at the Hol'd
Seward, having arrived from Anchor
age on the Admiral Farragut.
II. (\ Heed, formerly in business at
Anchorage, hut who has been to Dutch
Harbor,'returned on the Admiral Fa -
ragut and is stopping at the Hotel
Seward.
Four commercial mm. Sam Guyot,
F. J. Fox, John F. Chamberlain and
\ A. Schonacker, arrivals on the Far
agut. are making their headquarters
it the Hotel Overland.
Arthur H. Miller, of the Bureau fn
Education, is registered at the Hotel
Sexton fiom Anchorage, Mr. Miller
ame in on the Admiral Farragut.
Attorney l.. V. Kay returned from
Ynchorage this morning.
0. Carlson, who has been a guest
it the Hotel Overland for seveial
veeks, went out to Mile 23 on yoster
lay\s tiain where he will be employed
.'or the summer.
W. W. French is in from Mile 7 and
•egistei*ed at tlie Sexton.
Russell Noyes, from Afognak
jouud for Kenai, is registered at the
Hotel Sexton.
Mrs. Grace Towle returned on yes
erday’s train from out the line where
•he has been visiting.
Sixty two first class passengers
ind IS steerage are aboard the Admir
d Farragut bound from Anchorage
'or the states..
John C. Slaven took passage on the
Ydmiral Farragut bound for Fort Lis
cum.
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VM ERICA N Rlfl) CROSS
HOWS %T!IENS WORKMEN
HOW TO MAKE DUMMY LEGS
ATHENS. May il>— The Balkan
Commission ol the American Red
ross has brought to Athens an Am*
•rican superintendent and assistants
iih supplies in tin* rough for making
tifieial logs. At a Greek workshop
u Athens, American workmen are
'taking American artificia* mbs and
ire instructing Greek workmen in the
irt.
The American workmen have taken
emporary clyirge of the school for
he mutilated of the Greek army until
• Greek superintendent and Greek
•orkmen can be trained to take over
ho plant. The artificial legs will bo
ittod and given to Greek soldiers. It
> the intention of the Greek govern*
nent to see that every soldier who
.cods one is provided, with an Ameri
an artificial lep^.
An artificial limb weighing onl..
our pounds are now being supplied tc
mndreds of mutilated soldiers who
ormerly had crude pegs and cumber
ome twenty-pond artificial limbs if
mother pattern. The joy of these men
it being able once more to move
wound easily is daily expressed in the
Vmerican Red Cross workshops by
lancing about on their new limbs with
expressions of gratitude which, if it
were not so pitiful, would be amusing.
As a corollary part ot in is worK,
'hr American Red Cross also is sup
porting a school for the reeducation
of the mutilated. At this school the
disabled are being taught useful
trades of all kinds including tailor
ing. shoemaking, carpentering, metal
working, basketry, and stenography
and typing. For this latter work, a
large number of American typewriters
with Greek characters are needed.
-•>
SUBSCRIBE FOR THE GATEWAY
••
By Associated Press
WASHINGTON, May ID— The j
Sixty Sixth Congress assembled to
day in extra-ordinary session, and the
Republicans have returned to power in
the organization perfected today.
The me f age of President Wilson
will ho heard tomorrow.
Unofficial announcements were
made today that Congress is expected
to conduct inquiries into war activ
ities.
The Republicans have a majority
iii the House of 39 votes and two ma
jority in the Senate, Wilson’s veto
power to restrain Republican actio.1
as two thirds vote is necessary to over
ride a veto.
WASHINGTON, May 19— The
Democrats, at a caucus held Sunday
night, choose Senator Pittman as can
didate for President of the United
States Senate.
The Republicans are conceded in
a position to organize the Senate.
IS BUILD
BIG NAVY
'By Associated Press
NEW YORK, May 10— Secretary
f the Navy Daniels, who returned
lere last Saturday, after a visit in
Europe, stated that the United States
s to carry out a big navy building
irogram unless the League of Nations
ntorferes. Secretary Daniels said that
here will bo no navy program how- j
•ver with the League of Nations.
ALL RIGHT — GO AHEAD
n _ •
MEXICO CITY, May 10— The pal
ice of Cortez, in the suburbs of Coyoa
•an, is to be reconstructed by the gov
ernment and used as a museum for
elics of the Spanish conquest. The
tructure, 400 years old, has been al
owed to fall into ruins. In the court
;ard are ancient trees, under which
Mernan Cortez and his familiars wer:
vont to rest. These are hundreds of
ears older than the ancient building
tself. The chapel attached to the pal
ice is still in good condition.
START TEMPERANCE ACTIVITY
— ^ **
LONDON, May 19— What is ex
pected to become an important tem
perance movement was stalled at *i
neeting in the Mansion House last
week.
J. T. Dae, secretary of the Nation
al Temperance league, in outlining
he plan said it was proposed to cir
culate literature and to hold public
meetings in the pr’ncipal towns which
[the Lord Mayors would be asked to
convene and support.
By Associated Preua
PARIS, May 19— Germany contin
ues to assert that she will not sign
the peace tr<*hty. President Ebert, in
Berlin last night, declared that Ger
many could not sign the treaty. Count
Brockdorff Rantzau says that the
German delegation returned to Ver
sailles from Spa where they met the
government representatives. When
Rantzau left Versailles last Saturday
it was reported that the German del
egation would probably not return to
Versailles because of the many and
varied difficulties. Paderewski is ex
nected to arrive here on Thursday. It
is believed that the peace conference
will adjust the crisis in Poland so that
Padenvski can remain Premier.
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WEIGLE
LEAVES
ALASKA
By Associated Press
PORTLAND, May 19— C. H. Florey,
assistant district forestry agent here,
has been appointed superintendent of
the Alaska forests and begins his dut
ies July 1st. Present superintendent
Weigle has J>een transfered from his
headquarters at Ketchikan and be
comes supervisor of the Snoqualmio
forest, in the state of Washington.
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PONTA DELAGADA, May 19
Four destroyers were sent late Satur
day afternoon to help the American
navy seaplane NCI which lost its
course and alighted on the sea.
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