AN ALL
ALASKA
NEWSPAPER
-
HYDER WEEKLY HERALD
DEVOTED TO THE DEVELOPMENT OF ALASKA AND THE PORTLAND CANAL MINING DISTRICT.
;
r"' ’ "1
SUBSCRIPTIONS
$5.00 PER YEAR
IN ADVANCE
VOL 5, NO. 36
HYDER, ALASKA, SATURDAY, JUNE 15,1929.
PRICE TEN CENTS
LEGALITY OF
LEGISLATIVE ACTS
IS QUESTIONED
Contending that the recent
election of Cash Cole as Terr
itoiial Auditor by the legislat
ure is illegal on the score that
it was an invasion of the exec
utive authority, Robert C. Hur
ley, prominent Juneau attor
ney, has brought up the quest
ion of Cole’s right to hold the
office. A similar contention is
also raised by Mr. Hurley in
connection with the election of
L. W. Breuer as Territorial
Commissioner of Education,
who, he declares, was also
elected in defiance of provis
ions of the Oi'ganic Act.
Regarding the election of Mr.
Colo, Attorney Hurley alleges
that Cole was at the time of
his election an employee of the
Federal government and there
for ineligible under the law.
He further asserts that no
authority is vested in the legis
lature to fill an office of its
own creation by vote of its
members in whole or in part.
Mr. Hurley contends that the
duty of the legislature is only
to legislate and claims that the
body far exceeded its authority
in the case of Cole by filling an
elective office of its own creat
ion. The only way in which the
legislature could fill such an
ofiice, according to Mr. Hur
ley, is by instructing the gov
ernor to do so, or by calling for
an expression of the will of
the people through an election.
Regarding the election of Mr.
Brewer as Commissioner of Ed
ucation, Mr. Hurley argues it
was a void act, for the reason
that it constituted another us
urpation of the executive funct
ions of the governor. Mr. Hur
ley declares further that under
the federal laws the present in
cumbent, L. D. Henderson, is
entitled to hold office, with the
approval of the governor, until
his successor is legally appoint
ed or elected by the people.
Judge James Wickersham has
also raised a similar issue with
respect to the office of territor
ial highway engineer, held by
Mr. Robt. J. Sommers. ~
•o
NOYES BOAT COMPANY
ADOPTS NEW SCHEDULE
A change in the schedule of
Noyes Boat Co. between Hy
der and Ketchikan was inaug
urated this week with the arri
val of the Fairbanks shortly be
fore noon Wednesday and her
departure on the return trip
about 5 p. m. Wednesday af
ternoon.
The change is due to a revis
ion of the sailing schedule of
the Alaska Steamship Co.,
whereby the steamers of that
line on the Southeastern Alas
ka route now leave Seattle on
Sunday evening instead of Sat
urday. In order to make con
nections with the Alaska comp
any steamers the Noyes comp
any has been forced to change
the sailing hour of its vessels
to 6 p. m. Tuesday, thus mak
the arrival time here around
noon on the following day. On
the return trip to Ketchikan,
the vessels will leave about 5 p.
m. and arrive at Ketchikan
around 11 a. m. Thursday. This
MAY FORCE TRADING
Almost complete disruption of
the stock trading business in
Canada is threatened as a re
sult of a recent Dominion en
actment imposing a new gov
enrment tax on sales of mining
stocks, according to reports
from Vancouver.
The new tax schedule, which
goes into effect July 1, imposes
a tax of 1-10 cent per share on
stocks selling under 50 cents,
*4 cent pei’ share on stocks sell
ing between 50 cents and $1;
1 cent per share on stocks sell
ing from $1 to $3; 2 cents per
share on stocks selling from $3
to $20; 3 cents per share on
those selling from $20 to $100,
and 4 cents on those selling ov
er $100.
As will be readily seen, the
tax on the lower priced and
more popular sellers is out of
all proportion to those imposed
on the higher priced issues.
How it will work is well illus
trated in the following exam
ples taken from the “Stock and
Bond Report” of the Miller,
Court company of Vancouver.
Under the new system, a sale
of 1000 shares of Noranda at
$54, amounting to $54,000,
would be taxed $30, while a
sale of 1000 shares of Kirkland
Lake at $1.03 would be taxed
$10. The tax .therefore, on
Kirkland Lake would be 18
times that on Noranda. In oth
er words, the seller of $54,000
worth of Noranda would pay
the government only $30, on
the transaction, whereas the
seller of $54,000 worthof Kirk
land Lake would be compelled
to pay a tax of $540 on his sale.
On the smaller priced stocks
the tax is even more exacting,
1 as for instance, if we substi
tute Columbus Kirkland for
Kirkland in the above transact
ion, it is found that the seller
must pay a tax of $3,600 on a
$54,000 share sale. In this case
the Columbus Kirkland seller!
would pay, not 18 times the tax
paid by the speculator in Nor
anda, but 120 times the amount
asked by the government of
the Koranda speculator! This
comparison applies regardless
of the sum involved in the
transaction, the sum mentioned
being taken merely as a specif
ic point on which to base com
parisons. As the act places the
tax directly on the seller, the
broker passes it on to his client
by deducting the amount from i
i the sale. Thus a broker selling
$100 worth of Independence
! will deduct his commission and
! a tax of $10. But if he sells one
share of Royalite at $165 he
will deduct his commission and
a tax of but 4 cents for the gov
ernment.
It is pointed out that the ob
j vious effect of the tax will be
' to discourage stock flotations,
| co place a prohibitive impost
on public speculation in low
priced stocks and to put the
stock brokers under the strong
est possible pressure to trans
act their sales on the American
stock exchanges.
schedule will obtain as long as
tfrff'Alaska line keeps up the
Sunday sailings.
BIMETALLIC STARTS
SEASON'S ACTIVITIES
The Bimetallic Syndicate
started work this week with
the dispatch of a crew of men
i and supplies to the syndicate
properties on the south slope
of the Marmot river valley.
The initial activities will in
clude the establishment of a
camp and the opening of . a
new and shorter trail from the
lower valley. Later, the syndi
cate plans to start tunnels on
the highly promising gold vein
and on one of the several gal
ena veins included in the vein
system.
Activities will be under the
direction of Clay Porter, man
aging director and developer
of the famous Porter Idaho
mine, farther up the Marmot
valley. Mr. Porter plans to de
vote the entire summer to open
ing up the syndicate property,
which he considers one of the
most promising in the district.
-o
HOTEL PROJECT DELAYED
Uncertainty regarding the
outcome of the Canadian
Northeastern Railway project
is ascribed by Mr. F. C. Out
land, well-known mining man,
as the main factor in the delay
of his plans for the construct
ion of a modern hotel in Hyder,
as annunced by this journal
earlier in the year.
Mr. Outland, in outlining the
situation to the Herald, said
that conditions were particu
larly favorable for launching
and financing the project at
the time of his return to Seat
tle last fall. Interest in the
rail construction project and
the Portland Canal district as
its terminus was very general, i
As a result his plans received
considerable attention from in
vestors and quite a number ex
pressed willingness to assist in
backing the project. Finding
conditions so apparently favor
able, Mr. Outland made a spec
ial trip to Vancouver and ar
ranged with the Hall interest
for the necessary ground and
later engaged an architect to
draw the plans. Things were
progressing smoothly and the
project appeared in a fair way
to achieve early realization un
til the legislative curtailment
of the railroad franchise pro
posals, combined with the ab
sence of definite announce
ments by the railroad company
regarding its plans and finan
cial arrangements resulted in
a more or less general collapse
of interest in the project.
Mr. Outland expressed great
disappointment at the unex
pected turn of events, but is en
tirely confident that the hotel
project can be brought to a
successful culmination when
the rail construction proposals
reach a more concrete status.
o
I With the recent change in the
schedule of the C. N. R. steam
ers, mails will arrive hereafter
on Monday evening by the Ca
tala; Wednesday noon,via the
Fairbanks, and Saturday morn
ing by the Prince boats. The
Prince Charles, arriving on
Tuesday, does not carry Hyder
mail.
I
NEWSY JOTTINGS
BEARING ON LOCAL
MINING ACTIVITIES
The price of $171,000 paid re
cently by the Consolidated
Mining and Smelting Co. for
the remaining interests of W.
B. George and other stockhold
ers of the George Gold Copper
Company is reported to have
been one of the largest cash
payments ever made for a min
ing property in Canada. Re
gardless of the truth of this
claim the payment leaves no
further doubt that the big min
ing organization is well satis
fied with the outlook for the
George property, despite the
pessimistic contentions that
that the results of development
have been negligible and also
despite the somewhat dispar
aging statements regarding the
property attributed to import
ant representatives of the Con
solidated company.
The deal, according to a re
liable authority, involved about
1.400.000 shares of the total
1.500.000 shares of capital
stock of the George company
This means that less than 7
per cent of the stock is still free
on the market, provided it has
not been picked up by the big
company.
F. C. Outland, managing di
rector of Outland Silver Bar
Mines, Ltd., arrived from Seat
tle Sunday to renew develop
ment activities on the company
properties in the upper Salmon
basin.
Plans for the summer include
the construction of additional
camp buildings, together with
a substantial increase in min
1 ing activities above and below
ground. The company has al
ready driven nine exploration
| tunnels on its holdings, with a
total of about 1300 feet of un
derground work, and has devel
! oped a large tonnage of com
| mercial ore. The acquisition of
five additional claims last fall
has practically doubled the
| company’s earlier holdings.
! The new ground is in process
of crown granting.
Thomas Robertson, mine sup
erintendent of the Adanac
Mines Company of Alaska,was
an arrival from Victoria Sun
day and will continue develop
ment activities on the company
properties in the Fish Creek
section, where highly promis
ing results have been attained
during the past two years.
n , . _ -
The Washington-Alaska Air-'
ways seaplane Juneau paid Hy
der a second visit Wednesday
afternoon. Piloted by Anscel
Eckmann, the plane came over
from Ketchikan, with four
passengers in the fast time of
one hour and 10 minutes, tak
the same course as the mail
boat. The passengers included
Frank A. Metcalf, well known
Juneau surveyor, his assistant,
Ray McCormack, E. G. Morri
sey, editor of the Ketchikan
Chronicle, and a Mr. Davis, an
other Ketchikan resident.
After a short stop the plane
returned to the First City with
Messrs Morrisey and Davis,
Mr. Metcalf and his assistant
remaining here.
QUEER MISHAP AT
HTDER LEAD CAMP
Air pressure, caused by a
snow slide, which forced in the
upper end wall of the Hydjr
Lead company camp on Texas
creek, resulted in the lower end
of the structure being blown
entirely out of the building and
scattered in fragments over the
adjacent mountainside, accord
ing to information received by
attorney Ernest Blue, secretary
and local manager of the Ily
der Lead Mines, Lt'd., late this
week.
The air blast, in addition to
blowing out the whole end of
the building, a substantially
constructed affair of timber
framework covered with gal
vanized iron, also sent a large
part of the movable contents
of the structure hurtling down
the step hillside, in some in
stances to distances nearly a
quarter mile away from the"
camp. Even such heavy articles
as the stove were tossed out of
the building like chaff by the
sudden release of the terrific
pressure created inside of the
structure when the snow sud
denly forced in the upper wall.
From reports brought to
town Thursday by Charles
Smith and Harold Johnson,
employees of the company,
who discovered the damage
Friday, it appears that through
some peculiar vagary the blast
did very little damage to the
rest of the building, which is
an L-shaped structure 36 by 36
feet in its widest dimensions.
Insofar as they could determ
ine, the side walls and roof
sustained no serious damage
and were virtually intact. It is
said that snow slides have nev
er been known to occur on the
partially wooded ridge on
which the camp is located.
The accident is believed to
have taken place within the
past week, as the camp wras in
proper order when seen by
Frank Blasher about ten days
or so ago.
Mr. Blue left for the scene
Friday to appraise the damage j
and start repairs.
n.
BOXING BOARD NAMED
Governor George A. Parks
announced a few days ago
as the personnel of the first
Alaska Boxing Commission, K.
J. Jesson, Carl A. Drager and
! J. A. Talbot, all of Ketchikan.
I Mr. Talbot holds the three
year term under the recent
Congressional act authorizing
boxing in Alaska; Mr. Jesson
was named for the two-year
term and Mr. Drager was ap
pointed secretary of the board
for a term of one year. The
Commission will in turn ap
point local representatives in
all Alaska towns to handle
boxing shows, which may not
be held hereafter without per
mission from the Commission.
-o
The motorship Norco arrived
from Seattle and Ketchikan
Tuesday evening with four lo
cal passengers and a consider
able tonnage of merchandise
for various business houses.
Six men arrived on the Fair
banks to join the Johnson
Gardner road crew on Texas
creek,
OVER $1,000,000
GUN IN 0USK1
EXPORTS IN MOV
Shipments of merchandise
from Alaska to the United
States in May exceeded in val
ue those of May, 1928 by more
than $1,000,000 and also over
topped those of April, 1929 by
more than $435,000, according
to the monthly statement of
Collector of Customs J.C. Mc
Bride.
Copper headed the list of ex
ported commodities with a to
tal value of $831,361, an in
crease of $125,879 over similar
shipments in May last year.
Canned salmon attained sec
ond place for the month with
exports valued at $439,930, an
increase of $85,823 compared
to May,1928. Blue fox ship
ments gained third position
with a total of $231,450, a fig- .v
ure exceeding that of the same
month last year by $227,825.
The total of all fur shipments
was $315,704, the highest fig
ures for fur exports since Feb
ruary last year.
Gold and silver shipments for
the month totaled $243,967.
Following is the full list of ex
ported commodities and their
values:
Animals . 150
Curios . 1,060
Fish:
Fresh and frozen
(except shell-fish)
Halibut . 78,624
Salmon . 34,250
All other . 3,524
Canned (except
shell-fish)
Salmon . 439,930
Cured or preserved:
(except shell-fish)
Cod . ‘ 17,210
Herring. . 12
Salmon . 67,444
Shell-fish:
Clams . 40, 47
Crabs . 10,141
Shrimps . 12,551
Furs and fur-skins:
Seal skins. 340
Blue fox. 231,450
Silver or black fox .. 4, 15
Red fox... 30,484
White fox. 2,320
Mink . 8,501
Muskrat . 403
Beaver . 2,505
All other. 34,636
Manufactured' furs.. 450
Ore, matte and regulus:
Copper (5481 Gr. ton) 831,361
Lead (166 Gr. ton) 15,106
Stone, including marble 14,933
Wood: timber and
lumber. 8,921
*A11 other articles .. 1,583
Total value products
of Alaska . 1,893,151
Products of the United
States returned . 176,418
Total value of for
eign products .. 505
Total value of ship
ments of merchan
dise . 2,070,074
•Items included in
“All other Articles”
Hairseal skins. 345
Paintings. 950
Wool . 288
Gold . $218,788
Silver.25,179