?he ^lashan
No. 218 FIFTEENTH Yili SKAGWAY ALASKA. FRIDAY, DECEMBER 1912 """ '? ?
HISTORY OF
BAR1ETTE CASE
Valdei, Dec. 13 ? Judge Lyons
this morning denied the motion to
dismiss the proceedings against Bar
nette and Wing, and ordered the
trial to proceed under the Indict
uieot charging them with intent to
deceive by publishing f.il-e state
meats regarding the coudltion of
the bank Witnesses are being1
hoard for the prosecution this morn
ing.
The trial of the men connected
with tae wrecking of the Washiug
ton-Alaska bank, which is before
Judge Thomas Lyons, is one that
is of the utmost interest to thous
ands of Alaskans who lost their
money as depositors, or to those
who as spectators of the drama are
Interested in watching the wheels of
jus'ice or injustice revolve. Here is
a summing up of the case, furnish
ed by E. S. Bunch, a former Fair
banks newspaper man:
The greatest criminal case In the
history of Alaska ? greater even
than the sensational expose of the
Nome judiciary loot conspiracy that
gave Rex Btach the foundation for
his famous novel, "The Spoilers" ?
and which involves officials of at
least three of Seattle's greatest
banks ? came before a federal court
sitting at Valdez on December 2,
when prosecutions resulting from
the failure of the Washington-Alas
ka Bank of Fairbanks for an
amount estimated at $$00,000 to
$1,000,000 was taken up before1
t'nited States District Judge Thomas
R. Lyons.
The prosecutions it is estimated
will cost the government not less
than $150,000. Expense is not be
ing considered in preparation of
the case, witnesses being called
from point3 many thousands of
miles away.
Capt. E. T. Barnette, the "father
of Fairbanks" and founder of the
bank, against whom most of the
indictments were directed, is the
most prominent figure in the big
case, because of his reputed great
wealth and prominence as a North
ern pioneer.
The case and all It involves is
difficult briefly to explain, because
no incident that ever occurred in
the North has been followed by
such a great muddle of criminal
and clval actions, but the story of
the main facts of the trials is told
in following:
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Skagway Alaskan's Daily Photograph +
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?L ?% JL 4* ?!? ?
Vitliltv Slr.vt Sc^no.
T "i* V 1* t t t t t t t t t tii ? ? ? . . .
?J* This is a street scene lu Valdet, a flourishing city at the head ol Prince William Sound, 320 mllet due west from Skagway Beside* .j.
.j. being the site of a number of rich free milling quarts properties, the.e are millions of acres of grating and agricultural land# In the **' ?!?
? leys back of the city.
It is in this city that the famous Washington-Alaska bank wrecktn ; case is being held. ?
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In 1909 there were two rival
banks in Fairbanks, the Washing
ton-Alaska and the Fairbanks Bank
ing Company. The former was
managed by W. H. Parsons, now
vice-president of the Dexter Horton
National Bank of Seattle. Falcon
Joslin, F. E. Barbour and Edgar L.
Webster, all of Seattle, were di
rectors. Frank W. Hawkins, also
well known in banking circles here,
was teller. The Fairbanks Bank
ing Company had for its president
Captain Barnette, who for many
years maintained a winter residence
in Seattle; for vice-president, J. Al
bert Jackson, and for cashier, Lew
Wing. Numerous big mining and
business men of Fairbanks were
included in its directorate.
In the fall of 1909 a consolida
tion was effected by the Fairbanks
Banking Company purchasing the
Washington-Alaska business, and
starting anew, using the old Wash
ington-Alaska name. Shortly after
consolidation Barnette, desiring to
centralize his interests in a great
Mexican hacienda he had acquired,
began withdrawing from all busi
ness in the North. He tendered
his resignation as president of the
Overcoat
Season
is now at hand
IF YOU ARE PARTICULARLY
HARD TO PLEASE WE WILL RE
PARTICULARLY PLEASED THE
DAY YOU TRY OX OXE OP OUR
XEW FALL AXD WIXTER OVER
COATS WITH THE CONVERTIBLE
COLLARS.
PURCHASE IF YOU FIXD WHAT
PLEASES YOU. YOU WELL FIXD
US ALWAYS GLAD TO SHOW |
OUR GOODS WHETHER YOU BUY I
OR NOT.
Our Holiday
Goods will
soon be here
H. J. LYNCH.
consolidated bank, and came out to
Seattle expecting his successor
would be named soon after his de
parture I'roiu Fairbanks.
Barnette bad been in Seattle but
a short time when Jackson came to
him with a report that the Northern
insti'ution's affairs were in a criti
cal condition, because a Seat tip
bank, with which it had been doing
business, had refused to continue a
great overdraft usually available.
Such assistance was vitally neces
sary because of the great transact
ions involved in handling the bit;
volume of gold output. Barnette.
whose resignation never had been
acted upon by the directors, with '
Jackson made strenuous efforts to1
obtain the required assistance from
the banks here and in San Fran
cisco, but finally had to give up.
When It was realized by them
the overdraft could not be obtained,
a cable was sent to Hawkins, who
had become cashier of the consoli
dated bank, to close immediately
Barnette and Jackson hoped that
calamtty would be averted by such
a course. They planned immediate
ly undertaking a settlement of the
institution's affairs that would pro
tect the depositors against loss.
Of course, a great wail went up
in Fairbanks when, after a short
"run," the banks doors were closed.
Barnette returned to Fairbanks
to protect his name against the
wild charges being made. He dis
claimed all responsibility of whatso
ever character, but finished, lu his
conferences with court officials,
with an offer to lend practically his
entire wealth ? then chiefly repre
sented by property ? for the re
habilitation of the wrecked bank.
He stated his reason for doing this
was his- deep regret that hardships
had been wrought upon such a
great number of his old friends and j
his desire to see proved his claim
that the bank's obligation* all
could be liquidated front Its own
resource*. If properly handled. He
pledged to the court his Mexican
holdings, estimated to have a value
o' $'..(00. 000.
Instead of having the expected
result ol giving him an opportunity
to dt*ect the work of settlement of
(he bank's affairs, however, this
act of Barnette's brought new com
plications. More opposition was
stirred up against him, and the
United St .it p.t court at Fairbanks
was called upon by the persons lead
ing the agitation to make a search
inn grand jury Investigation.
The first gratfd Jury convened
spent a month going over the
bank's affairs an-' adjourned with
out Indicting anyone.
More agitation followed, with the
result that a second grand jury
was convened. This body proved of
a makeup just the opposite of the
other and returned Indictments in
sheaves.
Acts of Oarnette, upon which In
dictments ar* based, are conversion
of the Fairbanks Banking Com
pany's funds for the purchase of
the Washington-Alaska stock and
withdrawing sums from his personal
account in the institution.
Seventeen Indictments were re
turned against Hawkins. One of
these charges misappropriation of
funds with which he purchased
stock In the consolidation. Another
charges falsification of the bank's
books tha' would show this trans
action. Twelve charge him with
paying out the various depositors
the amounts of checks drawn by
them the last day the bank was
open, after having been notified it
was Insolvent. The other three
charge him with returning moneys
to depositors after he had been ap
Pop
Corn
FURNISHES ENJOYMENT THESE
1X)LD DAYS. A 10c PACKAGE OP
THE KIM) WE SELL WILL AL
MOST PILL A GUNNY SACK AF
TER IT IS POPPED. WE GUAR
A XTEE AGAINST FAILURE.
i P. H. GANTY, Grocer t
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pointed receiver, following the fail
ure. This last-named art he had
performed with the net Ion of Dla
trict Judge Peter Overfleld.
Vice- Pre. Ident Jackson waa Indict
ed on two counts, one of aiding
and abetting Hawkins in the stock
buying transaction and tte other for
making an allegedly false entry In
the bank's books In connection there
with.
The indictment that fell to the
lot of W. H. Parsona Is baaed up
on a statement of the old Washing
ton-Alaska Hank's condition prior
to the consolidation
wiIjKon mist apprar
as piw>mk<tti\<; wmrBM
Newark. Dec. II? Wood row Wil
son will have to break up hta va
cation sooner than expected, be
canse of the capture of the men
who tried to blackmail him. He haa
been served with a summons to ap
pear as a witness against Punn and
his roii.'ederates. Mr. Wilson will
sail from the Bermuda resort im
mediately
DOESN'T TRUST
UNITED STATES
Ottawa. I*r IS In ? diirmlon
or Id* Mil for til# propoaed appro
priation of thlrty-fl*# million d?H
Inra, by the f'anadian parliament,
with which to bnlld dreadnanght*
?. (he llrlitah nary. Wllfrwd Ijinr
e* premier of Canada, aaya
U lb* Idea la abanrd H# hi of
opinion I liar no ?i
w' i r*inlrr? the expenditure
f I h -? i ?nm. nr any other aim hy
the of Canada
A.^cotdl r lo th# 1i?t lng>il?h?d
Irman. England haa plenty of
Iwt'NMpn to handle all th# trt>?M#
rt?t ran poaalbly aria# from th#
ompllcatlor.a that a#em at preaant
# threaten many Karope#n ?m
;ri#?; he ?-T#n d"#*n t accept th#
ni?ed SUtea. which h# aayi to not
?> be (maud In th# Monro# d?
[ rf? .
MMmnn or thk k*i?
FOR PWRMPF.XT T%?T
Washington, Dec. IS Prmrtd#nt
Taft laat n?ght gar# Hla l?#t din
ner to his cabinet offkwm
On January 4th, th# Republicans
of congr*M ha?# arranged for a big
banqaet to b# glren at th# Waldorf
Astoria In honor of Mr Taft It
will be a tort of far#w#U p*rty
Th# president haa b#r?n wort on
hla memaftr , which will favor th#
adoption of th# bndget ayat#m of
cheeking and expending th# eonn
try'i m?n#r, on more scientific and
Mnaibie line#.
HI SMI. % MN)KIW Pl)R
WAR WITH ?HH*
Fehln, Dtf ???? Sh
aped a demand to China to take ac
tion for th# immediate *nppr?#?lon
of the Mongolian trouble#, or that
ahe will step in and sett I# the af
fair It la bettered that Russia I#
ctt^mptin* to ann#s Mongolia and
will n*e an* pretext for a declara
tion of war with the new Oriental
r> public
WOTHK.R til TRRIMK IHH
IS ll^TRII. IMKRin
Vera Cror. I?#c ll- Fosr Ameri
can battleships hare arrived In th#
harbor, bronght here, it la snld, on
acconnt of th# report ef serious
( ( rouble In Nicaragua
SUGGESTIONS :
FOR 1
Christmas Giftst
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We Have a large assortment of Holi- ,
T
day Novelties such as +
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SMOKING JACKETS
TRAVELING CASES
SILK HAXOKERCHICT*
NimUM
; KID GLOVES
HATH ROBES
i SILK SETS
WOOL GLOVES
NECKWEAR
SWEATER <*?ATS
I MHHKI.I. \H
wool. BLAHKKTW
FKLT Hl.irrKKM r?r
MEN. WOMP Mot
< HII,I>KF.X
\ Ijtrg* I. in* of
| SHO? of nil fcln.K for
ME*. WOHHV
< HII.DRKV
WILL CLAYSON
T5he Home of
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h HART SCHAFFNER <H MARX
b