DAILY GATEWAY
VOJ- I SI.WARD, ALASKA, FRIDAY EVEKIKG, SKITEMBEIt 8, 1005_N(>' ->!>
HOW RAILROAD
WAS FINANCED
Major Ballalne Tells of Retirement
of Shedd Syndicate and Taking
Over by frost.
Why the Frost syndicate of Chicago
capitalists was substituted for the
Shedd syndicate in the financial hack
ing of the Alaska Central Railway has
been the source of a great deal of spec- j
illation in Seward and in all other
towns along the Alaskan coast. No
authoritative reason has ever been
published but many fanciful ones have
gone the rounds of the pres-;.
Maj. J. E. Ballaine, who promoted j
the Alaska Central from its inception !
and is the only person who knows every
detail of every transaction connected |
with the promotion of the enterprise,
was requested by the (lateway this
morning to make an authoritative state
ment on the subject as a matter of
general interest.
In reply he gave this statement.
•‘Under the terms of the contract
with the Shedd syndicate 1 1-ad the
privilege of repaying them, at any
time before February 1, l!»Ot>, the
amounts they had advanced, plus a
stipulated bonus.
‘•E. A. Shedd was very frank in say
ing to me last summer that he had
come to Seward prepared to discount
a l previous statements 50 per cent,
and even then be satisfied, but instead
he declared that the strongest state
ments concerning the climate, resour
ces, harbor and general conditions
connected with the Alaska Central had
not been one half as strong as the facts
would justify. He was willing to con
tinue supplying funds for the complet
ion of the road to the Tanana river, he
assured me, sufficiently to push i he
work at a rate of at least lot* miles a
vear. But he insisted on a reorgani
*
/.ation of theeompany and a consequent
wiping out of all interests except im
own.
"Anticipating such a possibility I i
had organized two other syndicates,
either of which stood ready to take the ,
place of the Shedd syndicate and carry j
the work to completion on a basis ac
cording.full protection to everybody.
"1 preferably closed with the Frost
syndicate, who paid the Shedds off
ano took over the securities they held.
"The Frost syndicate is composed of
the squarest lot of men l ever had deal
ings with, and is strong enough tobuild
several railroads. Mr. Frost himself is
a young man of exceptional ability. He
has made a fortune by his own efforts,
and in doing so has always been con
siderate of the rights of others. I re
gard Mr. Frost as one of ihe strongest
men in Chicago in j>oint of character
anil general business equipment. As
everybody in Seward knows, the Alaska
Central is being constructed as sub
stantially as any of the transcontinental
roads. That is Mr. Frost’s style. He
believes thoroughly that the Alaska
Central is opening the richest mineral
country in the world, and his purpose
is to provide for the development of
those resources in the most efficient
manner."
GETS DIRIGO
EOR SEWARD
Alaska Commercial Company Char
ters Lynn Canal Liner for a
Trip to this port.
The steamer Dirigo, with a capacity
of 1,000 tons, has been chartered by
the Alaska Commercial Company to
sail from Seattle September 17
with as much of the waiting freight on
the docks there destined for Seward as
she can carry. J. J. McManus, local
agent of the A. C. Company, received
the news in a cable message last night,
lie states that the Melville Dollar will
probably make another trip to Seward
as the freight for this port is increas
ing so greatly.
The Dirigo belongs to the Alaska j
Steamship Coiupam uud lias been on
the Skagway run since shortly after
the Klondike strike. She is a passen
ger vessel. Her release even for a
single trip tiiis way exhibits the grow
ing importance of Seward as compared
with other Alaska ports. Every steam
er sailing for months has left freight
on the Seattle docks destined for this
port, and the addition of other vessels
has become imperative, as shown by
the charter of the Edith and Melville
Dollar from Seattle, as well as the Val
encia from San Francisco.
It has been learned from unquestion
able Seattle authority that next spring
will see two large and fast steamers in
addition to the present fleet on the i
regular Seward run b\ the outside pas
sage. These steamers will run direct
to Seward and will make the trip from |
Seattle in four days.
By spring also, it is expected that
Seward will he made a port of entry so
that vessels coming and going from;
any and all ports can clear here w ith-j
out going to Valdez. For main months
more freight, several times over, has
come to Seward than to all other ports
between Juneau and the Aleutian
chain, v\et nearly al‘ vessels run into
Valdez iirst to discharge a few small j
packages and thou come on to Seward j
with hpnu reds of tons. Seward is as;
near Seattle as Valdez and consignees;
here can see no reason why vessels
should laud first at the minor port
when the distance is the same.
Railroad Building flag Pole Up
A flag pole fifty-six feet long was set
in position on top of the railroad build
ing yesterday evening. The stars and
stripes will soon iioat from it.
Portland txpected Tomorrow
Steamer Portland is expected tomor
row on her return trip from Seldovia. j
Her lirst class passenger capacity is
already nearly all engaged for Seattle,
and many steerage tickets have been
sold. The steamer will take a cargo of |
ore from Ellamar._
Subscribers to the Daily Cate way who
fall to receive the paper will please notify |
the office at once. Phone Main 22
WATER SYSTEM
SOON COMPLETE
Mains Laid and in use on fourth
Avenue to Adams and Digging
Going on Rapidly.
The new water mains are in place on
Fourth avenue to Adams street, and
water has been turned into the pipes
to the buildings that far. Men are
now digging the trenches for the main
on Adams street. The system willl be
extended on Fifth avenue north from
Adams street past the railway office
building as far as the Gateway office.
On Third avenue a main will be laid
as far as the residence of Frank L.
Ballaine, across Lowell creek.
Gus Nelson, of Nelson Brothers, who
own the water system, stated this
morning that they expect to have a
new source of water supply before win
ter, as already published. No details
have been given out regarding this yet,
as the plans for it have not been en
tirely perfected, but the intention is to
have a reservoir which will allord a
water supply for a town of several
thousand population.
Mr. Nelson said that the mains will
be extended as fast as building in any
direction will justify it. 1 he system
contemplated at present will be finish
ed within a few weeks.
The wooden mains, prepared with
a tar covering, are entirely satisfactory
to the owners of the plant. W hen the
water was tui'ned into them on fourth
avenue only two slight leaks appeared
and these were at the joints and were
easily stopped, so that the main is now
in perfect condition.
STEAMER DOLLAR SAILS
Goes to Seldovia With Freight
But Will Return
Steamer Melville Dollar sailed yestei
day evening at 6:30 for Seldovia, where
she will discharge about odd tons of
railroad cargo. She will then return
to Seward and discharge lod tons which
were placed on board before a was
learned that the l’ortlanu would bt.un
able to take the entire Seldovia cargo,
as was the original intention, and that
it. was up to the Dollar to take it.
This Seldovia cargo must be discharged
before the remainder of the Seward
consignment can be reached conven
iently.
From Seward the Melville Dollar
will proceed to Valdez, for which port
she has some freight, besides the car
avan of government mules tor Fort
Liscum, whicli have been taken around
to see the best part of the coast before
they go to be introduced to their new
held of labor.
Until the close of the Portland ex
position, October 15, the Alaska Ooui
•*\ercial (Joinpany will sell round trip
tickets to Seattle lor $"0.
Temperature at 2 p. tn. today -58.
MUCH INTEREST
IN BIG FIGHT
Seward Sports Anxious for Returns
from Contest Between Britt
and Nelson.
Seward sports in common with those
all over the country are much interest
ed in the outcome of the boxing match
or tight, as the case may be, between
Jimmy Britt and ‘‘Battling’' Nelson at
Colma, California , near San Francisco
tomorrow night. The tight is consid
ered to be for the light weight chain
pionship of the world, althongh Joe
Gans has uever lost that title, accord
ing to strict rules.
Gans, however, cannot now make
the light weight limit of 1JJ pounds,
and the last time he tried it lie was
practically put out by Jimmy Britt. It
was claimed, and it was probably true,
that Gans was weakened by reducing
weight, but in either cuse the result of
that fight took him out of the light
weight running, in popular estimation.
Britt is conceded to be a cleverer
boxer and a faster man than Nelson
but be is not so hard a puncher. He
has never won a light on a knockout
over a man who was real Is in iiis own
class, while Nelson has won nearly all
his battles that way. Nelson can stand
more punishment than almost any man
now in the game, except the human
punching bag, Joe Grim. He can stand
a blow on the jaw which would pul am
other little man out.
The tight seems likely to settle down
to one of endurance, a quality with
which both men are endowed to an ex
traordinary degree.
Pools have been sold on the tight at
the Bank saloon, and an effort lias been
made to get the tight by rounds over
the cable. So far it lias not beeu pos
sible to arrange to keep the cable open
that night.
No tdbie News Today
Fur the Hr si time since the cable
readied Seward no cable news came
over the wire todaj. Operator Faust
was unable to line! out what the
trouble was, except that no news came
tu Alaska, so the Gateway is compell
ed to issue a purely local paper.
Excelsior To Take Dora’s Run
The Valdez Prospector of August M
says that the completion of her present
trip to the westward the Dora will go
to Seattle for repairs, and the Excel
sior Will lake her run.
Steamer Santa Clara, which is ex
pected in Seward tomorrow, is not yet
reported in Valdez.
MEN WANTED
By P. Welch & Company, contract
ors on the Alaska Central at Turn
again Arm. Station men, rock men,
ax men and laborers. Steady work
all through winter and next summer.
Top wages paid. 26*