THE ALASKA PROSPECTOR
Valdez, Alaska, May 7, 1908. NO 14
ALASKA HOME RAILWAY Will
PROBABLY BECOME A REALITY
Out. toward the entrance to Key
stone canyon on the right-of-way of
the Alaska Home Railway a number
of men under charge of Guy Banta
are establishing camps and installing
supplies. This force will he increased
as soon as the snow goes off suffi
ciently to permit of work on the
grade, and operations confidently be
lieved to be the forerunner of the
real work of building the road to the
foot of the summit will be under way.
The men were sent out at the direc
tion of Edmund Smith, acting at the
behest of individuals in the east who
own stock in the road and Mr.Smith,
while making no promises for the
future, is fairly confident that the
project launched in such a spectacular
manner by 11. 1). Reynolds will be
come a reality. Whether or not this
is so depends upon several things,
among them the attitude of the peo
ple of Valdez who hold stock in what
since the bursting of the Reynold's
boom lias been considered a defunct
enterprise.
In his belief that the road will be
buildcd, Mr. Smith is joined by 10. T.
Teter, vice-president of the Reynolds
Alaska Development Company, who
is now in Valdez endeavoring to bring
some sort of order out of the chaos
the company's affairs are in. Mr.
Teter has absolutely nothing to do
with the railroad, other than that the
Reynolds-Alaska Development Com
pany is a creditor of the road to the
extent of something more than $100,
000. It is also a stockholder in the
road to the extent of :jjvr>,000 which
Reynolds invested in the latter en
terprise as head of the former.
Convinced of Utility
Mr. Teter, however, is convinced
that the railroad will bo a paying
proposition, and that in its construc
tion lies the most tangible hope of
the stockholders in the Reynolds
Alaska Development. Company to
realize on their investment. Holding
this belief Mr. Teter will advise those
whose interests he represents to join
with the other stockholders in, and
creditors of, the road in what ever
plan may be deemed advisable.
Speaking with regard to the pro
SENATOR DAVIS
GOES ON RAMPAGE
Newspaper Men at National
Capital Called Dogs and
Imps of Satan.
Washginton, May i—Senator Jeff
DaviH wont- on a rampage on
tho floor of tho senate today
and despite all offorts to atop
him delivered a tirade which has
never been approaehed in tho sacred
preeineta of the tipper house. The
newspapers were tho main ohjeet of
the senator's wrath hnt he also paid
Ida reapeeta to tho money powera of
the eountry.
Davis sturted in mildly enough,
and in the course of his remarks mado
some reference to what ho declared
to bo a misrepresentation of a pre
vious speech of his. Then, of a. sud
den he began to rave, walking to and
fro in tho isle, shaking his fists and
acting like ft madman. He declared
thftt tho press of the country is sub
sidized and that the newspapermen in
Washington are "imps of Satan".
MLot them distort my speeches,"
shouted Dftvis, "they »ro hrut»l dogs
and may drag my remains to tho
altar of Baal or scatter them to tho
crows, I do not care."
The senator then turned his atten
tion to Ilookefolior and Morgan, de
claring that they are traitors to tho
country. When he had finished his
fellow lawmakers wore agape with
astonishment, and expressions of dis
gust at the outbreak were numerous.
The copper Industry In the United
States practically started in l«r»o,
with MO tons of total production.
sent statu* of the railroad Mr. Smith
says that lie is acting for a few indi
viduals only and is in no way repre
senting the railroad organization in
sending men to the canyon. "The
men I represent "said Mr. Smith, "are
putting np their own money to defray
the expense ot what is being done at
present. They have considerable
money invested in stock in the road
and from investigations made at their
diroction they are convinced that the
road will begin to pay once it is con
structed to the foot of the summit.
"So far, however, nothing has been
done toward re-organizing the com
pany and the work just started is
more for the purpose of protecting
the rights the railroad now has than
than anything else. This work will,
however, be directed along such
lines as will prove of benefit if it is
decided to put the road through.
"While there prevails an impres
sion that the railroad project is a
part and parcel of the other enter
prises planned by Reynolds, it. is in
fact a distinct and separate concern.
With the exception of &f>,000 worth of
stock the stockholders of the Rey
nolds- Alaska Development Company
have 110 interest in the road and the
other stockholders in the road have
absolutely no interest in any of the
other Reynold's companies.
Will Decide Soon
"Whether or not the railroad is
ever built will be decided in the near
future. If it is decided to build there
will be ample funds available and
work will start in earnest this sum
mer. Before this can be doukled it
will be necessary to hold a meeting
of the stockholders and to effect ro
organization. At present the affairs
of the road are in the hands of two
trustees, Reynolds and R. N. Cuin
mings, at present in Seattle.
"I believe that if it is decided to
build the road, those interested in
the Reynolds-Alaska Development
Company, and in the various subsi
dary companies will subscribe to
stock in the railroad company in the
realization that by the construction
of the road, and by that only, ca 1
GHASTLY CRIMES
ABE DISCLOSED
Bodies Discovered in Ruins
of Burned House Point
to Wholesale Murder.
La Porto, Intl., May 6—Evidonee of
murders by tho wholesale have just. i
been found in the ruins of the home
of Mrs. Belle E. Qunness which wan
burned a week ago. At tho time of j
of tho Are the body of Mrs. dimness!
and her three children were taken '
from tho rultiH. It was hollevcd then
that the tiro wn« accidental but the
discovery of Unlay ban created the
belief that tho tiro wan Incendiary,
and Htarted for the purpose of de
stroying the evidence of many inur
dors.
Ray Lamphero, who it in known
wa« an intimate friend of Mrs. (lun
ncHH, 1h under arrost. and will be held
pending an InvoHtigation. It Ih tho i
bollof of the authoritloH that Lamp- j
here and Mrs. Gunness have commu
ted many murders and that tho othor
bod ten found are tho remains of their
victims.
Tho remainH of four men and of one
woman were taken from the ruins to
day, one of tho bodies being Identi
fied as that of Andrew Heldgron.
This body had boon dismembered.
Lamphero is suspected of having
killed the Gunness woman and her
children in ordor to remove the last
living evidence of his 'own crimes,
and to have thon sot fire to tho
houfio.
In tho world's production of copper,
the United Htatos stands first.,Mexico
aooond, Hpain third.
they hope to get any return 011 the
money they have already spent."
Mr. Smith, while expressing the
utmost optimism with regard to the
future of the railroad project, empha
sized the faet that lie wishes to
create no false hopes. lie further
said that in ease the creditors of the
railroad try to hold the Reynolds
Alaska Development Company res
ponsible for the railroad debts it will
be necessary to go into court to
legally establish the status of the
railroad as a distinct corporation.
All in all, however, there seems to
be the best indications that the rail
road will be huilded, and further, that
the stockholders in the Reynold's
Alaska company will take up the tan
gled threads of that concern and of
the suhsidary concerns, such as the
saw mill, the real, estate investments
and the steamship line and place
them 011 a money making basis. This
can be done by organizing the various
outcroppings of the development com
pany into suhsidary companies, each
standing on its own merits, or by in
corporating Jill the side issues into the
parent, company.
Reynolds, it is asserted, was auth
orized to invest money in nothing ex
cept the mines and store at Horse
shoebay.llis invest ments along other
lines were unauthorized.
So far as Reynold's connection with
the railroad is concerned, it is de
clared that Ins act in spending the
money of the Alaska Development
Company to forward this enterprize
practically amounted to stealing. He
in known to have received somewhere
in the neighborhood of $100,000 from
1 the sale of stock in the railroad, and
it, is the belief of those at the head of
' the development company that a
| large amount of the money in that
concern was unlawfully diverted to
the railroad.
It is because of these facts that
those representing the men whose
money is tied up in the various Rey
nolds projects are confident that a
locomotive will yet steam along the
right-of-way of the Alaska Home
Railway.
BIG SUM TO BE
SPENT IN ALASKA
Northwestern Commercial
Company to Invest $15,
000,000 in Three Years.
Health', May 1—An expenditure of
$ I. ft ,000,000 in Alaska and Seattle dur
ing tlie (mining t hree yearn is planned
by the Northwestern Commercial and
Allied companies according to iistate
ment made today hy President Neeles.
This vast, sum will bo spent at the
rate of $5,000,000 a year, and will he
directed toward the development of
the company's holdings in Alaska, in
the improvement of the steamship
torviee and on its water front termin
ids in Heattlo.
SENATE IS TO SIFT
WHEAT FROM CHAFF
Washington, May 4 — Following
dose on its decision to continue until
December, action on the bill provid
ing that the government guarantee
bonds of Alaska railroads, the Henate
decided today to semi to Seattle this
summer, a committee to take testi
mony with regard to the standing of
the various roads. The committee
that' had the hill in hand found out
that thero are forty-two applications
on tile to obtain railroad rights-of-way
in Alaska.
The Investigating committee will
endeavor to sift the legitimate pro
jects from t he wild-cat. schemes, and
only t hose projects found to be under
taken in good faith will be recog
nized.
ALASKA ROADS IN I
MONOPOLY'S HANDS
New York Herald Voices
Charge That Powerful In
terests Fight Railways.
COMMITTEE STARTS INOURYj
' |
Congress Seeking Inlluenee Ac
cused of Stilling Efforts to
Huiltl Lines.
In connection with the I.overingj
bill, providing for £ovornm<»nt aid for
tin; construction ot railroads in tin*
.Territory of Alaska, 111<• house com-1
mittce on territories has begun an in
vestigation of tin* entire railroad situ- :
ation in that territory with a view to
ascertaining flic trntli or falsity of!
charges that powerful interests are!
engaged in keeping railroad capital
out of the country for Mie present.!
The industries against which this
charge is made are those said to be
^tllied with the (luggoiihciins, who tor
.years have been active in the rich
copper llelds of the Tanana district of
A laska.
Kfforts have been repeatedly made I
by railroad promoters to get aid from !
eongrcHs for the building of railroads
in Alaska. The White Pass Railroad,
pwned largely by Knglish capital, !
which is said to be in close touch wit h
the tiuggeuheims, is the only com-!
ploted road, and, connecting by boat, j
maintains a through route from Dyea
and Skagway to Dawson ( it s on the J
Yukon. The only other railroad in
the territory which has been allowed
to progreHH unhindered is the Alaska
(Jontrill, projected from ('ordova bavj
to Fairbanks, about forty-live miles
of which Ih now built and in opera
tion. It is to far removed from the
copper country to be dangerous, lis'
promoters, however, have become in-'
volved in litigation in Chicago and
little is now known Iicim of t he work '
being done on t lie road.
Several attempts have been made |
by outside interests to tap the rich1
Tanana district, both from \ aide/, and
Katalla. In each instance a rival
road, backed by an unseen hand, has
projected a parallel road, beginning
within a few miles of the terminal,
and subsequent events in connection
with efforts to lloat stocks and bonds
and carry on construction work, have
led to the charge that somebody is
trying to prevent railroad construc
tion in this part of the territory.
Rumors, verified in part by govern
ment investigation, have it that the
Tanana copper district is one of the
richest in the world,and that it is the
desire of the (luggonhcims to get con
trol of this territory before permit
ting its great wealth to become
known. The battle for entrance into
this field has been so earnest that
construction crews on the rival roads
have frequently had armed conflict.
In addition to the warding off of
transportation facilities, the interests
which control the White Pass road
are alleged to control almost the en
tire water transportation of Alaska,
reaching from Dyea to Nome and St.
Michaels, and in part, from Nome to
Pugotsound.
The house committee ih especially
interested ill protecting legitimate
interests, with ti view to getting at
tho coal Holds in Alaska, which arc
known to be enormous and iinmon
nely valuable. II. is said Alaska coal
of an good a quality as that for which
the United Htates is now paying from
$12 to $ 11 a ton for naval use on the
Pacific, can he mined in Alaska and
laid down at. Pugot sound or at
Manila for $r> a ton.—N. Y. Herald,
April 5.
SEWARD CREDITORS OF
REYNOLDS MAKE TERMS
The Howard creditors of the Rey
nolds Alaska-Development Company
have made terms with VV. (\ Ilrown
and K. T. Teter. Tho creditors have
expressed a willingness to take 2/) per
cent of their claims in cash and the
rest In stock in the company.
The largest, part of the world's sup
ply of copper comes from 170 mines,
three-fifths is produced by live mines,
and one-fifth by one mine.
ALASKA MINES IN
GOOD STANDING
I. R. Ball Says Eastern
Financiers Have Confi
dence in Country.
COPPER DECLINE EXPLAINED
Dryer Bay Operator Comes to
Superintend Resumption of
Work on Properties.
Alaska mining propositions staiul
hotter with the financial interests of
the eountry than do the properties of
any locality in the country, aside
from these of old established worth,
according to I. K. Ball, of the Ball
Itusscll company, owning properties
at Dryer hay. Mr. Ball is a passen
ger on the Yucatan and is bound for
Dryer hay by the way of Latouche.
He will at once put in motion the re
sumption of work 011 his properties.
This work was discontinued last
March.
Mr. Ball has, since November,spent
the greater part of the time in Chica
go. lie says that the present indica
tions are that less money will he
spent in mining projects this year
than last, as the majority of these
having money to invest are confining
their investments to propositions of
a recognized earning ability, but that
Alaska is well thought of in the east
and that so soon as recovery front the
elfeets ot the recent ilnancial flurry
is complete there will be plenty of
capital available for the development
of Alaska mining propositions.
Nevada, uoourdiiig to Mr. Ball is
dead s<» far as mining investments are
concerned, particularly with regard
to copper propositions. Mr. Hall spent
about a month in Nevada, enroute
from Chicago to Alaska, and says
(Continued on page 1 j
IOWA MAN MAY
GET HARLAN JOB
President Announces Ap
pointee as District Attor
ney of Third Division.
Washington, May 7—President
Roosevelt today announced Ins inten
tion of appointing James ,1. ('roosley,
of Iowa tosueeeed Judge Nathan Har
lan as district attorney for the Third
judicial district of Alaska. The ap
pointment has not been ollleially
made, hut it is helieved here that
when it is, it will meet with with op
position in the senate.
There are several candidates for the
position, among them two or three
Alaskans who have strong hacking.
REFUSES TO SANCTION
CASTELLANE DIVORCE
Home, May 2—The Pope today re
fused to grant an audieneo to the
Countess de Castellane, formerlly
Anna Gould, who came to solieitthe
sanction of the church to her divorce.
The Pope Iris declared that an an
nullment by the church of the marriage
is impossible.
Arbitration Treaty Signed
Washington, May 7—The arbitra
tion treaty, which will henceforth
govern all disputes between this
country and Japan was signed today
be Secretary Hoot and by Ambassa
dor Takaldra.
Japnncae Are Satisfied
Tokyo, May 7—The text- of the
treaty between the United State sand
Japnn which was signed in Washing
ton yesterday lias been published by
the papers throughout the Kmplre,
The conditions are acceptable to t he
people at. large and all suspicion re
garding war Is removed.
WAGON ROAD FOR
CANYON PLANNEO
Thoroughfare to Extend
From Summer Trail Switch
back to Dutch Flat.
GOYKWXMli XT CALLS l?OK BIDS
Work Is to lie Completed by
October 15 and Will He Great
Aid to Freighters.
A wagon road through Keystone can
yon by Oct. 15 is the present' plan of
(ho Alaska Road < 'ominisHion. Bids for
doing the work hy contract are being
advertised for and will he opened
June 1st and the construction work
will begin within thirty da.ts after the
award is made.
The road will begin where the
switchback on the summer trail starts
and will extend from that point for a
little more than a mile and a third, or
to Dutch rial. The road will be ten
feet wide and will run along the west
wall of the canyon at a sulllcient
height h above the river to obviate the
danger of floods
The specifications call for the ex
cavation of approximately 17,1#0 cubic
yards of earth, a retaining wall of 350
cubic yards, f,0(.0 square yards of
paving on a one to one slope, this
paving to he in tho nature of rip-rap
where no retaining wall is required to
protect from the river. The slope of
the embankments is to be from one
to one-quarter of a foot in solid rock
and from one to one and one-half feet
in loose work. There will be ten cul
verts. The advertisements
appear auothe-i__>liiinn <
poet or.
The construction of the road will
be of greaf benefit to freighters as it
will make possible early travel in the
fall and late (ravel in the spring.
JAP SEALER IN—
FORBIDDEN WATER
Men Are Landed Near Sttka
and Schooner Reported
to Be Off Yakutat.
A .Japanese sealing schooner is
operating oil Yakutat, in the vicinity
of the Malaspitia glacier. according
to a report brought to valdez by tho
steamer Herllia. The Hcrtlur further
reported that this schooner, or aeraft
believed to he tin* same, landed sev
eral men on an island near Sitka and
that the Indians on the island were
forced to provide the Japanese with
food until the latter could make their
way to Sitka.
WORK OF ASSESSING
RESERVATION BEGINS
N. K. Olilssen, elected to appraise
the reservation for the purpose of
contribution to the glacier dyke fund,
today begun platting the real proper
ty. As soon as this is completed the
appraisement and assessment will be
made, the latter to be fixed by a com
mittee of residents of the reservation.
It. is proposed to raise $'2,000 <u> the
reservation,
The elect ion of Mr. Ohlssen came
las a surprise to him. lie was clerk of
the election board and wan unaware
1 that lie was a candidate until the
| count of the ballots began.
Chauncy Mover, delegate from Full1'
! banks to tin- republican convention
! at Ketchikan is in town, waiting for
, the Portland. Mr. Royer represents,
t he faction of Fairbanks republicans
I known as (li»» McOInn delegation. Ilo
believes that the proxies sent out by
the Dodge delegation will not be ad*
mitted.
There are less than '2MI mines which
produce more than 100,(MM) lbs. of cop
per per annum. Of these fifty*
i eight arc located in the United St ales