Copper Ore Shipments From Cordova Alone Are Over $1,500,000 Each Month
i SEP The Cordova Daily Times I HE
VOLUME ONE. NUMBER 163. CORDOVA, ALASKA, WEDNESDAY, JUNE 16, 1915. PRICE TEN CENTS.
SEWARD ROAD LAW SUIT OVER PURCHASE
PRICE OF $1,150,000—SUSPICION OF GRAF1
WASHINGTON, D. C., June 16.—Associate
Justice Wendell P. Stafford, of the Supreme Court
of the District of Columbia, has issued an order to
the officials of the United States government to show
cause why a restraining order should not be allowed
preventing said officials from paying the purchase
price of the Alaska Northern Railroad.
The defendants named in the preliminary pro*
ceedings are Franklin K. Lane, Secretary of the
Interior, William G. McAdoo, Secretary of the
Treasury, John Burke, Treasurer of the United
States and the American Security and Trust Com
pany. The suit has been brought by E. A. Shedd &
Company and John R. Thompson of Chicago, the
holders of $300,000 worth of the old Alaska Central
bonds. They advanced the money to build the first
20 miles of the Seward railroad, and now are trying
to prevent the Canadian vendors of the Alaska
Northern from getting the $1,150,000 that the
.-.. .- .
government has agreed to pay for the property.
The plaintiffs ask that the court appoint a
receiver for the road, whose duty it will be to
receive the purchase price from the United States,
and distribute it under an order of the court. The
complaint alleges that the Canadian committee of
the bondholders of the Alaska Northern has been
ordered by a secret arrangement to pay August
Heckscher, of New York, $100,000 for promoting the
sale to the government.
It also alleges that the Canadian bondholders
have entered into an agreement to pay Otto Hanson
of San Francisco, $100,000 in consideration of the
dismissal of the suit recently brought in the District
Court at Valdez, Alaska, charging Ballaine and
others with wrongful use of the funds of the railroad,
and asking for an accounting.
The tortuous dealings connected with the
organization and operation of the Alaska Central
and the Alaska Northern are gone into in detail in
the complaint, which in general alleges, that if the
deal as made with the government is carried out, the
equities of the American investors will be lost, and
the Canadian bondholders, who acquired the securi
ties after the reorganization will get the enitre
proceeds. , j 't.ik
This suit is another chapter in the very involved
affairs of the Seward railroad, and it looks very
probable now, that the government will have diffi
culty in securing a clear title to the road. The huge
price to be paid Heckscher for selling the road to the
government is the cause of much comment, and it is
believed that if the case ever gets to trial, will result
in some astounding revelations. The $200,000 so
paid for promotion services is a big commission on
the purchase price, and the Chicago stockholders
see no reason why they are not more entitled to be
paid than Mr. Heckscher.
In all likelihood, the court will issue the
restraining order, but will not make it permanent
unt'l the issue of the case has been decided, or a
receiver appointed. If the receiver is appointed,
Heckscher will have to depend on the gratitude of
the individual bondholders for his fee and the
Hanson suit will not be compromised. In any event
there is small chance that the government will pay
for the road when the appropriation made by the
last Congress becomes available on July 1.
Rumors of the action taken by Shedd & Thomp
son have been flying around Wall treet, New York,
for some time. The activity of Heckscher, a million
aire broker, in inducing the government to purchase
the road have excited a great deal of comment, and
it has even been suggested that a congressional
inquiry may result. The total commissions to be
taken from the purchase price, are said to be in
the neighborhood of $365,000,
VICTIM OF LUSITANIA
BEQUEATHS TO PUBLIC
DUBLIN, June 16.—It is announced
that the hulk of the estate of Sir Hugh
Lane, the wealthy Irish art expert
who was lost on the Lusitania, is be
queathed to galleries in Dublin and
London. The principal items in the
estate are the collections of paintings.
JAPAN PROTESTS
BOYCOTTING
TOKIO, June 16/—A news agency
announces today that the Japanese
government has persented an official
note to China protesting against the
anti-Japanese wave that is sweeping
the country. The Chinese are ex
tremely resentful over the advantage
Japan took of her unpreparedness for
war, when she forced China to grant
the demands recently made. The
Chinese have been showing their feel
ing in their own way. and it is a way
that will hurt Japan more than any
thing else, because it seriously crip
ples her trade with China. Boycotts
are being secretly organized through
out China, the people pledging them
selves not to buy any goods of Jap
anese origin.
The government has been unable to
locate the organizers of these move
ments, which commenced in Shanghai,
and Hankow, and there has been in
some cases considerable disorder,
when Chinese buying goods In a Jap
anese shop were assaulted. China is
the biggest customer that Japan has,
and if the boycott continues to spread
at its present rate, the Kingdom of
the Mikado will lose considerable
revenue before the end of the year.
The boycott is advertised by printed
slips calling upon the patriotic Chin
ese to punish Jupan for the ignomini
ous treatment recently inflicted upon
China. Small boys are employed to
distribute the circulars who, when
arrested, say that they do not know
who gave them the circulars. The
Chinese government is evidently ear
nestly trying to suppress the boycott,
but so far has been unsuccessful. It
Is believed that the Chinese business
men are behind the movement partly
to promote their own prosperity, and
partly for motives of patriotism. There
can be no doubt that the feeling
against Japan is Intense and wide
spread, and the Chinese are past mas
ters in the art of boycotting. What
possible course of action will be open
to Japan in cuhc the boycott is nol
crushed, is the source of much specu
lation.
- • A
WAS THE UNITED STATES FOOLED
BY MEYER GERHARD GERMAN AGENT?
Special to Tho Times By Associated Press.
WASHINGTON, June l(i. A sensation was
sprung on the public today when it was learned that
the State Department is investigating charges
against Meyer Gerhard, the German who was given
safe passage to his own country by tho allies, at the
request of the United States. This government
asked for his safe conduct through the lines, because
STILL RETIRING SLOW
AUSTRIANS ENTER RUSSIA
LONDON, .lane 16.—The Russian left is still
retiring in Galicia, but they are stubbornly contest
ing every foot of ground they are yielding. The
fighting is continuous and bloody, and tho loss of
life on both sides is enormous. Latest advices from
Petrograd admit that the Russians have withdrawn
across the Galician frontier into Bessarabia from
Czernowitz. In the region near Jaroslnw, the tier
man troops received heavy re inforcements and
compelled the Russians to retire at this point. Their
first trenches are now some distance from the right
bank of the River San. The Russian war office claims
that their troops have been successful on the Ti&'
menitza and Stry rivers, partly offsetting the
reverses at other points on the battle line in Galicia.
ANOTHER ZEPPELIN FLIES
OVER COAST OF ENGLAND
LONDON, .Tune IG.—The British war office
officially announced this morning that a Zeppelin
had raided the northeast coast of England last night.
Explosive and incendiary bombs were dropped in
several towns resulting in the death of 15 non-conr
batants and the injuring of 15 others. Fires were
started by tin* incendiary bombs at various places,
but they were all extinguished with little damage.
PETROGRAD, June 16.—Grand Duke Const an
tine Constantinovitch, a member of the reigning
family, died last night in this city of heart disease
The grand duke was one of the important figures ol
lie was supposed to be an official messenger from the
German ambassador to the United States, Von
Bernstorff, bearing private advices for bis country
concerning the negotiations now pending over the
Lusitania disaster.
The pass issued to Gerhard bore the name of
l)r. Anton Meyer Gerhard', and it is now said that
lie was Dr. Alfred Meyer, chief of the supply depart
the Russian empire, taking an active part in the
councils of the government during the present war.
He was president of the Imperial Academy of
Sciences, and was instrumental in many movements
increasing the efficiency of the army, and his advice
and suggestions were always received with the
greatest weight by the war office. The grand duke
kept at his t^sks. up to the hour of his death which
occurred in his office in the Academy building.
BRY/ IIS PUBLIC HOW
UH I STATES WILL AID
!E MOVEAFTER WHO
WASHINGTON, ' !). C., June 16.—William J.
Bryan today issued the first section of his forth-1
coming statement on the European disturbance
entitled “Causeless War.” Bryan includes in his
article a prophecy that the greatest peace making
opportunity in the history of the world is certain to
come to the United States before the present great
war is ended, lie declared that when the war is over
there will be an irresistible demand for an inter
national conference to discuss the doctrines of inter
national law, which are at present being interpreted
by the belligerent countries as being formulated for
nations at war instead of nations at peace. The
rights of the neutral countries must la* made more
definite and certain, and their enjoyment guarant eed
bv the conference, to prevent the incessant incite
tion to war that the lax definition of these rights has
shown in the present case.
BRITISH SOLDIERS CAPTURE
MORE GERMAN TRENCHES
PARIS, June 16.—The French official statement
for today contains the assertion that the British
troops yesterday captured a line of Gennnu trenches
west of La Basset*. The trenches were subjected
to a heavy artillery fire, which was exceedingly
destructive, and were then carried by storm. Tin
British losses were comparatively slight.
rnent of the German army. The charge is that the
real purpose of the man in this country was to
secretly buy munitions of war in the I'nitcd States.
Gerhard came to this country apparently properly
accredited from tin* (Jennan Red Cross organization,
and' the officials of tin* society are inclined not to
question his identity, as they say his credentials
were all in proper shape.
Inch torpedo boat
COLLIDES WITH STEAMER;
LOSS OF LIFE IS SILL
--- _ I
CHKRBOl RG, .June lt>.—The French torpedo
boat No. 331 was sunk outside the harbor today in a
collision with the British steamer Arleva. The
accident happened in a dense fog, and all the crew
of the torpedo boat were saved with the exception of
six. The damage to the Arleva was slight, and the
steamer lowered its life boats as soon as the collision
occurred, and rescued tin* sailors from the warship.
The Arleva reached this port shortly after tlu*
accident occurred, and the injured have been trans
ferred to the marine hospital.
r [
KARliSRl'HK, .Fun*- lt>. -The authorities have
announced that as a result of the bombardment
of this city by a flotilla of live French aeroplanes
yesterday, 19 people were killed and 14 seriously
wounded. Many others were slightly wounded by
the flying missiles, but not dangerously. Tin* prop
erty damage had not been estimated, and the
authorities have refused to make public the extent
of it.
INVENTOR FAMOUS DIRIGIBLE
TOO ILL TO mENO TO DOT!
—— -- ' '
AMSTERDAM. .June 1<>. Count Zeppelin, the
inventor of the famous German dirigible, is seri
ously ill at his home, suffering from an attack of
bronchitis. He has bet n p> -vented from keeping
an appointment to visit the Imperial headquarters
of the German army, when important moves of the
airship fleet were to be considered.
ENGLISHMAN IN ARMY
HAS GERMAN TIT]
LONDON, June 16.—The new Ba
de Reuter Is a private In Kitchen
army. He has the title because
permission of Queen Victoria
grandfather was granted the right
it though conferred in Germany. ,
CHICAGO CTREE
CUR STRIKE
i
CHICAGO, June 16.—As a result
the activities of the municipal t
state officials the street car »
started at midnight last Sunday t
called off at 5 o'clock this morn
and normal traffic on all the lines t
resumed. Ttie men and the com par
have agreed to submit their dispu
to a board of arbitration, and b
sides have agreed to abide by
decision of the hoard. The strike t
one of the shortest and most effect
on record, absolutely tying up all
lines within the city Trout the tliut
was commenced. The sympathy
the public was plainly with the in
as it was felt that they have 1
grievances which should be rented!
-:o.
Jack Dalton, P. \V. Lee, supet
tendent of the Canoe Pass Pack
Company, and Secretary Carpenter
the company, were passengers on t
morning's train to look over the fl
ing situation at Abercrombie.
-:o:
NORTHWESTERN SAILS
FOR SEATTLE TODi
The steamship Northwestern
rived in Cordova from the westwj
last night about 7:15 p. m. and
luuined at the dock all night load!
coi>per ore for the Taconm smelter a
5,000 cases of salmon from the Copj
Hirer Tacking Company at Mile 56.
The men at work on the boat
night found the weather beautiful,
at no time being dark, and daylit
was the rule even at midnight. T
ship cleared for Seattle at 8 o'clc
this morning with the following p
sengers from Cordova for Seatt
Mrs. Lewis Husdal, M. 0. Klepack,
(!. Steel. L. Miekkelsen. E. (V Claut
and two steerage. For Juneau- M
Hattie Emmerich, W. L. Smith a
one steerage. The Northwestern h
on board 300 tons of Ellamar ore. T
value of the 1,200 tons of llonama t
on board Is estimated at 5S75,000.