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VOLUME NO. 5.
PETERSBURG, ALASKA, JANUARY 30, 1930
\
NUMBER 28
Alaska Railroad Seen As
Victim of Official Sabotage
From “Labor”
That the Interior Department
has sabotaged the government
owned and operated railroad is
the only fair conclusion that
can be drawn from a report on
its operations just made by Sen
ator Robert B. Howell, of Nebras
ka, chairman of a select commit
tee on investigation appointed
by the Senate at its last session.
The committee, composed, in
addition to Senator Howell, of
Senators Kendrick, Wyoming,
and Thomas, Idaho, went to
Alaska last summer and held 22
hearings on the line of the rail
road, at which 56 witnesses tes
tified. The report which has
been made to the Senate sum
marizes thp testimony.
Several instances of what the
committee declares to be ‘gross
mismanagement” are cited as
reasons for the unprofitable op
eration of the Alaskan railroad.
Power Plant Was Profitable
At Anchorage, headquarters of
the railroad, the government in
stalled a power plant to supply
power, heat and light to the
shops and other railroad prop t
ty and also a telephone system.
Subsequently the telephone
system was leased to the munic
ipality for operation and the
railroad company entered into a
contract with Anchorage to sup
ply electric energy in bulk to the
town.
“These arrangements,” says
the report, “proved advantage
ous to the railroad and satisfac
tory to Anchorage, as the muni
cipality has enjoyed a substan
tial profit as a middleman sup
plying telephone and electric
service to its citizens.”
However, private promoters
conceived the idea of getting into
the power business, and they se
cured assurance that if a private
plant were built the government
would cease to produce electric
energy even for the railroad.
Generous With Public Property
“The railroad’s requirements
were 40 per cent of all the elec
trical energy consumed in that
region and unless the hydro
electric plant could have the
railroad as a consumer its con
struction would not be justified,”
says the report..
“Not only did the railroad
cease to produce its own energy,
but purchased it wholesale from
the hydro-electric company at 4
cents per kilowatt hour, while
small consumers at Anchorage
were offered a rate of 2V2 cents.
Through its revenue from the
sale of electric energy would be
gone, the railroad turned over,
intact, its electric distribution
system, covering the city, for the
distribution of hydro-electric
| energy and without one penny
'of compensation. It did not
even require the hydro-electric
company to purchase its electric
generators, but generously
agreed to maintain its electric
j station as a standby plant with-1
out any compensation whatever, |
except should an emergency i
arise requiring operation, then!
the railroad was to be repaid the
expense incurred. 1
v $ >5,000 Lost in Nine Months !
This operation which was sus-1
pended for the benefit of private
promoters was the only profit
able undertaking of the Alaskan'
railroad, the committee says. In'
nine months of 1930 the loss to
the railroad was $5§,000, adding
that much to the railroad’s
mounting deficit.
“It may be urged,” says the re
port, “that this transaction has1
•an ugly aspect, and it has except
for the childlike blandness and
naivete of the explanations of-'
fered by the responsible officials,
which was that the result was
wholly unexpected and is, in
deed. much regretted, and that
the railroad had no authority to!
distribute electricity except as a
matter of necessity.
The necessity in this case, af
ter 13 years’ service by the rail
road, ended when some one else
was ready to supply Anchorage,”
says the committee with sar
casm it does not attempt to
hide. *
Hospital Loosely Managed
The committee declares the'
■abroad maintains a hospital for
"he treatment of employees, but
citizens generally at Anchorage
are admitted for treatment, and
non-railroad patients owe $66,
000 for services which the rail
road has made no effort to col
lect.
Another instance where the
government’s interests were sa
crificed cited by the committee
deals with a narrow-guage rail
road running 40 miles north
from Fairbanks, constructed in
11004 when the latter town was
booming as a bonanza placer
• camp. When the gold petered
; out the owners induced the gov
1 eminent to buy the road now
known as the Chatanika branch.
I From the day of its acquisition
by the government this branch
lost money at the rate of $121!
I per day, and, altogether, cost1
Uncle Sam $1 000,000.
In spite of all delinquencies,
| the committee declares the rail
1 road’s operation should be con
tinued and that the business ef- >
jficiency be enforced. It also re
commends that the Senate con
tinue the committee to check on
operations during the present
year. j
Petersburg Hi Trounced Twice By
Kahi Ball Team in First City of Alaska
-x
P. H. S. gave Kayhi a couple of
good work outs on last Monday
and Tuesday evenings at Ket
chikan. While the final scores,
were in favor of Ketchikan the
Petersburg hoopsters are re
ported to have put up a game
hght and played good basket
ball, especially in the second
game of the series, sinking sev
eral long shots for which con
siderable credit is due. Nervous
shooting in the first game ruin
ed the score for Petersburg, the
final figure standing 10-36 for
Kayhi. In the second game, Ness
with 12 points and Gordon with
14 gave Kayhi something to
work for, although a final spurt
in the last quarter gave Ketchi
kan the long end of a 31-45
score. Petersburg’s weakness is
largely accounted for by the
temporary loss of Fred McGilton
from the team. McGilton has a
passing grade in every subject
but it is understood that his
general average was slightly be
low the requirements. Against
the protest of Petersburg, Roy
Peratrovich played on the Ket
chikan team. Northrup made
the big score for Ketchikan with
20 points in Tuesday’s game. The
scheduled game with Metlakat
?a was called off on account of
the additional time which would
have been required. Moreover,
j Metlakatla was not able to
(guarantee a return game.
—-x
Allison Peters returned to Pe
tersburg from Sitka where he
has been spending the winter.
Ford Prices Are
Cut All Around
-x
Edsel B. Ford, president of the
Ford Motor company, has an
nounced reductions in prices of
Ford cars and trucks of from $5
to $45 on 15 models.
“Reports we have received
from our branches and dealers
throughout the world leads us to
believe that the automobile
business will show a steady im
provement,” Mr. Ford said. ‘Since
the automobile industry- is a
basic one, any betterment in it
cannot help but have a benefi
cial influence on business gen
erally.”
In the case of the coupe and
sedan, representing the models
of greatest output, the price re
duction is respectively $5 and!
$10, while the higher reductions!
are on the so-called deluxe mo
dels. The reductions were effec- 1
tive last week.
In announcing a reduction at!
this time, Edsel Ford followed a
practice initiated by Henry Ford
c n several previous occasions1
when the automobile industry
was suffering from business de
pressions. By reducing prices
end speeding up production, the
cider Ford invariably succeeded
in his objective—hastening the
general business recovery.
-X
TWAS A GRAND TIME
-x
It took three boats, the Brook- j
lyn, America and Hazel H. to
transport the Petersburg basket
ball team and Legion visitors to
Wrangell, Saturday last. The
team to play ball with the Wran
gell Town Team and the Legion- j
aires and Auxiliaries along with!
ether guests to be entertained i
by the Wrangell Post and Auxi
lariary at general good allround
social affair. The Democrat, Mc
Kinley and Sunwing brought |
the Ketchikan delegation of over
sixty to Wrangell.
Fortunately all of the fleet of'
boats arrived in port at about
the same time so that they were j
received by the hosts and a pa-!
i’ade started up the dock in thru
the center of town. The Ketchi
kan Post’s drum and bugle corps j
made itself very prominent in'
the parade.
In the evening the Wrangell
Posts entertained the guests in
the Redmen’s Hall at a four
course dinner which was about j
as nice an affair as could be hop
ed for any place. Immediately
following the dinner, Mr. Pentz,
editor of the Wrangell Sentinel,1
as toastmaster kept the gather
ing on edge with his timely
comments and picking out the
different speakers for the oca
sion. All of the officers of the
Posts and Alaska Department
present had to spout forth their
little speeches. As hosts the
Wrangell folk left nothing un
done to make the affair a suc
cess.
In the evening the crowd all
repaired to the Community
Gymnasium where the dance of
, the evening was scheduled to
i take place. A capacity crowd got
on to the floor making it almost
too crowded to be comfortable
but with the fine spirits of the
| evening all were out for a good
time and such a little thing as
stepping on each ather’s toes or
bumping into each other all
, passed off in the friendliest of
j way.
In the Drum and Bugle Corp
'contest ni which all three posts
j took part, Petersburg took first
i place and received the grand
i prize. The bugles consisted of
paper covered combs a©d the
bugle call was “How Dry I Am”
along with the traps, the stunt
was a humdinger and Messers
Fred Nelson, Andrew Johnson,
; Charley Anderson, Harold Dawes,
Asks Large Sum For
Ahska Railroad
-X
Senator Howell of Nebraska,
author of an amendment to the
Interior Department appropria
tion bill providing $250,000 for
developing tonnage for the
Alaska Railroad, explained today
the chief purpose of the fund is
to determine the extent of an
thracite deposits on the Mata
nuska branch.
“Deposits of anthracite are
reported fifteen or twenty miles
from the end of the Matanuska
branch,” he said. “The money
will be used to drill and deter
mine the extent of these deposits
which seem to offer the best op
portunity for developing freight
tonnage on the railroad.”
He said none of the money
would be used to help any parti
cular projects, such as private
enterprises. The language of the
amendment provides it shall be
used for “investigation of the
mineral and other resources of
Alaska to ascertain the poten- j
tial resources available which
will affect railroad tonnage.” j
The Nebraska senator headed
the Senate committee which re
cently completed an investiga
tion of the road’s operations in
an attempt to determine the
cause of a deficit. The committee
recommended increases in j
freight and passenger rates,1
curtailment of mileage and in
vestigation of resources.
Dividends Given to
Stockholders
-x—
Stockholders of the Piggly
Wiggly Stores of Alaska received
checks to cover the semi-annual
dividends of eight per cent. This
is the third semi-annual divi
dend for the owners of Peters
burg stock in the company or
ganized by Donald Armour, pre
sident and manager of the
Alaska Piggly Wiggly Corpora
tion.
The company has a policy of
reinvesting its profits in Alas
ka by taking part in the up
building of every town in which
it is represented. All profits are
paid to Alaskan people who aid
in the development of the Terri
tory. This is strictly'an Alaskan
organization for Alaska. Says
Mr. Armour: “We believe we
have built a reputation for fair
dealings and want that reputa
tion to grow. One of our store
managers is an Alaskan boy,
raised in the Territory, while
others are Alaskans by making
their homes here. It is our poli- j
cy to employ people who are of
the North as managers and
workers in our stores and hope
that some day our entire work
ing force will consist of such
people. Piggly WiggIy is a per_
manent Alaskan institution and
always will, we hope, remain so.” I
■x
Chicago Raid Exposes
Graft in High Places
-X
Records which were described
by prosecutors as revealing “as
tounding graft” that reached
into high places and in some
quarters said to reach into the
halls of Congress, were seized in
Chicago recently in a hotel
operated by one of the chief
lieutenants of A1 Capone.
The operator of the hotel ac
cording to the records seized
was said to have a business of
social connections with various
officials. Purported payoff lists,
ledgers and other papers per
taining to liquor, gambling and
vice, were among the documents
seized.
-*—x
Mr. and Mrs. Herbert Bradley
of Wrangell came over to visit
with relatives in Petersburg for
a few days.
-x
The Petersburg Post of the
American Legion will sponsor a
benefit dance at the Sons of
Norway hall after the basket
ball game Saturday night to
raise the balance of Petersburg’s
quota for the Red Cross fund to
aid drought sufferers in the
United States. There are hun
gry children in our own coun
try this winter. Time to shell
out.
-x
Mrs. L. Reinke returned to
her home on the Queen after a
short business trip to the Capital
city.
-x
Mr. Donald Armour, of Ket
chikan, was a business visitor
in Petersburg while the Queen
was in port Juneau bound.
-x
Peter (Taku Billy) Wilson was
linjured last week when an axe
in the hands of his son slipped
| and inflicted a severe cut on his
hand wrist.
Henry Hasbroucke and Dick
(Hahson were awarded a prize
j which was an empty oil can to
! which was attached an old worn
out funnel attached bf boxing
wire.
In the wee hours of the morn
ing the dance broke up with a
crowd still unwilling to wend
their weary way home.
MAY SEARCH WITHOUT
WARRANT
The House of Representatives '
has passed a bill sponsored by'
the Biological Survey defining;
the authority of game wardens!
and allowing them to search
boats, camps and houses with- i
out search warrants for game or j
fur and at the same time re- i
duces resident fee for hunting
licenses to $2.
; The administrative functions!
of a department is now co-equal j
with the judiciary in enforce
ment of game laws in Alaska.!
This law has the backing of the j
Biological Survey to make legal!
j their heretofore illegal search
ing of boats, camps and houses
for game and fur. It has been the
| practice of the officers of this
[department to enter boats and
camps and to bulldoze their way
around scaring innocent fisher
men and trappers. Protests a
gainst these unwarranted ac
tions so aroused the citizens of
Alaska that the wardens were
hard put to justify their illegal
actions. The bill now legalizes
their searches without warrant.
There is no question in the
minds of Alaskans that this law
will be given a thorough airing
in the courts to test the validity
of its scope.
-x
FLU IN EUROPE
A wave of influenza is sweep
ing Europe while Britain is in1
the midst of the worst epidemic
of grippe, influenza and colds
epidemic since 1927. France Ger
many, Spain and Portugal re
port unusual suffering. Reports
from Berlin estimated that 10,
000 persons in Germany were
being treated for influenza and
colds and that one-third of the
patients were in hospitals.
-x—
Petersburg Junior Stamp Col
lectors’ Club will hold its first
meeting next Monday evening
under the leadership of Frank
Hermann. A very encouraging
letter was received by Mr. Her
mann this week from John H.
j Newman, the official court sten
ographer of Juneau, enclosing
approximately five thousand
stamps, enough to start each
boy off with a fine collection.
So far, eleven boys have indi
cated their interest.
Anderson and Langton Held;
Heavy Bail Required
X
An Associated Press dispatch!
from Ketchikan published in the <
Seattle papers tells that a series |
cf mysterious disappearances of j
boatmen in Southeastern Alaska!
was being investigated by the j
United States Marshal’s office!
and the Department of Justice.
The circumstances surround
ing the disappearances are said
to be similar but sufficient evi
dence had not been found to
prove that the disappearances
were plotted by a single killer.
Those missing include Albert
Farrow and L. C. Davis who left
Petersburg for Snow Pass last
November and who were never
found; Albert C. Anderson who
went hunting ashore from his
boat and failed to return and
John Wikstrom a troller who
left Ketchikan on his boat and
just vanished from the face of
the earth.
The violent death of John
Marshal who was found slain
on board his boat near Ketchi
kan in October was the worst of
the cases reported.
Farrow and Davis left Peters
burg Novtmbef 9th, on the gas
beat T-2709, jointly owned by
Farrow and Clarence Langthorn
and on their return trip from
Snow Pass they failed to appear.
Langthorn and Anderson report
ed at Wrangell on the 7th of
this month that they had picked
the boat up at Fire Island, Snow
Pass and taken it to town for re
pairs. The boat was half full of
water, the £lutch frozen, six
fathoms of Anchor chain out
with anchor, tender missing a
long with some personal equip
ment of the men. They reported
the boat was found on December
28 but did not report in to cus
toms officer until January 7th
Lanthorn who was living with
\nderson in Exchange Cove re
ported to W. R. J. Reed, U. S.
Customs Collector for the Portj
of Wrangell that he had loaned i
the boat to Farrow to make the j
trip to Petersburg. He was over- j
due when they started to look j
for him (two months later) and;
that Farrow’s blankets, clothing j
and rifle were still on board the
craft. They stated it their belief,
that a blow had come on and
Farrow meeting with engine
trouble might have fallen over
board. They evidently did not
know at that time that Davis
and Farrow had left Petersburg.
U. S. Deputy Marshal of Ket
chikan came to Petersburg last
week to investigate this case and
along with Dick Burch, Cy Coyne
and Deputy Marshal Hans Wick
went down to Lanthorn’s camp.
After making several serious ob
servations they put the two men
under arrest and brought them
to Petersburg where they are be
ing held pending further investi
gation.
-x
The Coast Guard Cutter “Cy
gan” under the command of
Captain Halvorsen has been in
Petersburg the past few days.
O. K. McManus of Juneau was
in town this week. They call him
Frigidaire but not because of his
frigid air.
-x
Miss Peggy Carson, former
nurse in the Petersburg hospital,
was a passenger for Ketchikan
aboard the Queen.
-x
C. C. Mundy has been packing
frozen salmon for shipment the
past several days. A sizable ship
ment will go forward on the
southbound trip of the Norco
■his week.
-x
Last week we were all cocked
'and primed to suggest that An
drew Johnson run a lawn mower
over his lawn which had a fine
spread of grass on it when Old
Man Winter sent dowm a four
inch coat of snow. Now that the
snow is all gone and the grass
still stands nice and green the
suggestion is still in order.
Rev. and Mrs. David Waggoner,
cn the Mission boat Princeton,
arrived in port Tuesday after
noon from the West Coast of
Prince of Wales Island. They re
port conditions on the West
Coast not so bad and everyone
more or less in a happy frame of
mind in spite of the gloomy out
look for the canning season for
1931.
Wrangell Town Team Gives
Petersburg Team u Drubbing
The Petersburg Town Team
took a real drubbing at the
hands of the Wrangell Town
Team, Saturday night last in the
A. N. B. Hall, Wrangell. A large
and very enthusiastic crowd, in
cluding Sam Cunningham and
Art Sorsett, cheered the home
team to victory. The score at the
ed of the game stood 33-15 in
favor of Wrangell.
The first quarter started off
fairly even with Wrangell a
couple of points to the good but
with Petersburg fighting its way
uphill on a large floor to which.
they were unaccostumed. It was
not long before this handicap
made no little difference for the'
Wrangell team spread out their!
offensive and the Petersburg'
team did not follow out but kept
their close attack and defense.
The hard line passing of the
Wrangell team and their team
work soon gave them a lead that
could never be challenged. In
the second half the Petersburg
team picked up a little and for-'
got to a large extent that they
were not individual stars and (
.their team work soon put the!
Igame on a much faster basis. I
i Shaquanee was hurt so badly in
'the second half that he had to
call time out—having been
bumped into by an opponent
while up in the air. He still car
ries a lump on the side that
could have been real serious;
Louis McDonald also checked
out immediately following the
game in the room where he went
to pick up his clothes. Dr. Kears
ley had to be called to give him
a stimulant to bring him out of
his faint.
The line-up of the Wrangell
team will be somewhat different
next week as Livingstone Des
mond. their regular center was
returning from Juneau when
the game was under way. The
line-up of the local team also
will be strengthened somewhat
and with the game on the local
floor it should be “darned” in
teresting.
-x—
SOFT PEDDLES JONES LAW
President Hoover agreed with
the provisions of the Stobbs bill
passed by Congress, which bill
modifies the Jones law by pro
viding penalties of lesser severi
ty than in the Jones law.
Mrs. Rachel Peratrovitch is
! returning to Petersburg soon.