THE NENANA DAILY NEWS
Application made April 1, 1918, at the postoffice at Nenana, Alaska,
for en;ry as second class mail matter, under the Act of March 3, 1879.
“WHERE RAIL AND RIVER MEET”
Published every afternoon except Sunday, by the Nenana Printing
Company, at First and B Streets, Nenana, Alaska.
R. G. Southworth...Editor and Manager
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WICKERSHAM LETTER
TO SECRETARY LANE
Former Delegate Blames Bailey and Riggs For Loss
of Year in Work South of Nenana. Says
Water Monopoly is Menace to Road
The second instalment of the now
famous Wickcrsham letter, relating
to the alleged waste on this division
of the railroad and incompetency
and misdeeds of officials formerly in
charge, ^s published for the benefit
of the readers of the Nenana News.
THE SECOND CHAPTER
Waste In the Nenana Division.
In the organization of the Alaskan
Engineering commission in May,
1914, you designated Thomas Riggs.
Jr., a member thereof, at a salary
of $10,000 per year and put him in
charge of construction north 'of
Broad Pass, in the Tanana district,
with headquarters at Nenana. At
the time of his appointment Mr.
Riggs had never worked on a rail
road, or in railroad work; he never
even surveyed on a railroad or
worked in a railroad office; and his
only acquaintance with railroads
was as a passenger on railroad
trains- You had known him inti
mately for many years and had full
knowledge of his inexperience and
incompetency before his appoint
ment. His was a social and polit
ical appointment and an offense
against the Alaska railroad project.
Riggs had charge of construction
work on the Nenana-Fairbanks di
vision for four years—from the
time of his appointment in May,
1914, to the date of his appointment
as governor of Alaska, March 7,
1918. During that time he had
constructed seventeen mites ot mam
line south of N'enana. and but
five mi 1/ of narrow main line north
from Fairbanks—22 miles in four
years! And fourteen miles of the
main line south of Xenana, built
beiow the flood level of the glacial
■waters of the Xenana river, were
washed out and destroyed by incom
petent location, thus leaving him a
credit of three miles of standard
gauge main line south of Nenana,
and five miles of narrow gauge
near Fairba|ks, in four years!
Herewith is a graphic drawing
marked “Exhibit A-’ with two pho
tographs attached which show the
conditions on the line south of
N'enana as the same were exhibited
to me by the officials of the road
in September, 1918.
The line was originally located
below the level of the surljgce of the
river, and when the summer thaw
threw out the glacial flood it nat
urally took down the borrow pits
and ditch, cut the grade down like
sugar, thus utterly destroying the
line for miles as shown in photo
graph “B.” Your attention is also
called to photograph “C” on the
same chart, for it shows the recon
struction of this line by a compe
petent railroad builder on higher
ground in September and October,
1918.
On September 6 and 7, 1918, in
company with Engineer-in-chief
Browne, and your special examiner,
Mr. W. A. Ryan, I was taken over
both these lines, the one undercut,
and destroyed, the other a mile or
two away on higher ground—two
parallal lines for a distance of 25
miles. The reconstructed line had
been built from mile 3 south of
Xenana, that being the only part of
the Riggs road which could be saved
on account of incompetent location.
The road was abandoned from mile
3 to mile 28 south of N'enana, and
rebuilt on the higher level. Of the
25 miles destroyed by this incompe
tent location 14 miles were com
pleted, graded, tracked, surfaced and
trains running over it; about 8 miles
beyond that were graded ready for
the track, and the other 3 miles
were under construction.
At the average cost per main
line mile there was a loss on the
24 miles of completed road of nearly
$2,000,000, in addition to the loss of
8 miles of grading, and 3 miles
under construction, probably $2,500,
000. and a year’s loss of time in the
completion of the road, and the end
of the authorization and appropria
tions, which effectually forbids the
completion of the main line over
Broad Pass until Congress shall
pass new legislation and additional
appropriations.
But you will answer, this was
just one of those unavoidable acci
dents to all railroad building. No
one knows the weakness of that de
fense better than you do, for Billy
Ryan has long ago advised you of
the true facts, though he has prob
ably prepared a defense for you bet
ter than the facts will justify. The
loss of those 25 miles of railroad
was the result of the drunken inef
ficiency of a locating engineer, act
ing under an incompetent commis
sioner in charge of the Nenana di
vision, neither of whom ought to
have been permitted to handle the
public funds, and would not if you
had given the matter that careful
attention which a railroad contrac
tor would have given the job.
Herewith attached and marked
Exhibit B, is a letter addressed to
you, dated October 14, 1918, and
signed J. C. Rogers, (who was given
a discharge with a high record by
the engineer-in-chief, which he
handed me with the following let
ter). The letter reads as follows:
“Seattle, Oct. 14, 1918.
Hon. Franklin K. Lane,
Secretary of the Interior,
Washington, D. C.
Sir:
My nams is James C- (Red) Rogers
and I was employed as a laborer in
construction work at and around
Nenana, by the Alaskan Engineering
commission from June 26, 1916, to
Aug. 11, of that year, and at various
times since. I have in my possession
a certificate of discharge signed by
the engineer in charge, giving me a
good record, and saying there is no
objection to my re-employment,
dated Aug. 8. 1918. During my
work there between June 26 and
Aug. 11, 1916, I made the beds and
attended the rooms of Mr. Bailey
the chief engineer. One of the beds
was sometimes occupied by Thomas
Riggs Jr., although he resided most
of the time at Fairbanks. Bailey
kept a considerable amount of whis
key, beer and wines in the room at
all times, and drank liquor very
largely and offered me some of it to
drink. The liquor was there the
same time Mr. Riggs was, and he
knew of it, without doubt. Bailey
also frequently entertained notorious
women there, and the genera! char
acter of the rooms w'as bad Mr.
James Hagen, deputy marshal, also
occupied a bed in the room when
Rigss was not there.
Respectfully,
J. C. ROGERS"
When in Xenana in September
last, many citizens complained to
me about Bailey’s drunkeness and
other disreputable public actions
there. His general habits in the
matters suggested in the foregoing
letter were well known to the peo
ple in X'enana and Fairbanks—and
certainly Riggs was not unaware of
the facts. Drunkenness, Mr. Secre
tary, in headquarters at Xenana,
publicly flaunted in Mr. Riggs’
face, cost the government railroad
funds a loss of millions of dollars,
and a year’s loss of time, and the
end of the appropriations, and
brought failure to the enterprise. If
Mr. Riggs had been a railroad man
competent to perform $10,000 value
in railroad service per annum, he
would not have permitted a drunken
incompetent to ruin the enterprise,
Nenana Terminals
me terminal improvement? at
Xenana line the river bank, upon
which stand great warehouses; ad
joining are shops, mills, roundhouses,
tanks, miles of switches and yards,
administration buildings, storerooms,
hotels, dormitories, residences for
officials, terminal facilities fit for
the Xew York Central, and but three
miles of main track' constructed
in four years! A beautiful town
rite in a wide fertile valley, graded
streets, wide concrete walks, school
and municipal buildings, city water
and light plants, gymnasium and a
splendid government hospital, con
structed at the expense of the rail
road funds, and but three miles
of mam line track constructed in
four years! A government town
controlled by rules and regulations
promulgated by the secretary of the
interior, presided over by officials
paid from the railroad fund; extra
ordinary election laws fixing the
qualifcations of voters, and elec
tions held under orders of the Alas
kan Engineering commission, in vio
laton of the laws provided by Con
gress for the incorporation of muni
cipalities in Alaska, and but three
miles of main line track constructed
in four years! A perfectly organized
bureau for the government owner
ship and operation of the Alaska
railroad, with high priced officials
in every position, presided over by
a drunken engineer-in-chief and an
innocent commissioner, all paid out
of the railroad fund, 75 per cent
overhead and 25 per cent work, and
but three miles of main line track
constructed in four years!
That is Mr. Riggs’ record as a
railroad constructor at Xenana, Mr.
Secretary, and you are responsible
for it. T ou knew he was hope
lessly incompetent when you sent
him there Similar conditions of
incoompetency and waste exist at
other places on the line, but they
are now known to you, so those
mentioned may stand as types.
Tramporution Control In Alaska
The Alaska railroad bill was in
troduced in Congress—in the Senate
by Senator Chamberlain, and in the
House by myself, on April 7, 1913.
Thereafter, in May, 1913, the bill
at which the delegate from Alaska
managed the production of evi
dence in support of the bill, while
the officials and representatives of
the White Pass company, and the
Alaska Syndicate, conducted the op
position. Hearings on the bill were
held before the House committee on
the territories in July, 1913, where
the same interests appeared in oppo
sition. All this testimony is in
printed form; you are familiar with
it, and with the public opposition of
both the Alaska Syndicate and their
ally the \\ hite Pass company, to
the Alaska railroad. Anyone as
familiar with that contest as you
are will know that those two inter
ests will do anything within their
power to defeat the construction of
the government railroad over the
Broad Pass into the Yukon water
shed.
Upon the passage of the bill and
its approval by President Wilson on
March 12, 1914. these Alaska trans
portation interests began active prep
aration to render its construction
and operation a failure. Of course,
the easiest way to do that was to
get next to those having charge of
construction, thus making a profit
of it while aiding in its destruction.
That simple system was followed,
as the facts plainly demonstrate.
On April 9, 1914, less than a
month after the approval of the Act,
the Alaskan transportation compan
ies doing business on the Yukon and
Tanana rivers entered into a written
contract, was signed by the White
Pass & Yukon Railroad Co., whose
president, Mr. O. L,. Dickeson, ap
peared before the Senate committee
and earnestly opposed building any
government railroad to the Yukon
Interior, because, he said, it would
interfere with the projected scheme
of his company to enter the trade
in Interior Alaska. The White Pass
& Yukon Railroad Co., Ltd., is an
English corporation, and its several
subsidiary corporations, organized to
hold nominal ownership of sections
of its lines in Alaska. British Co
lumbia and Yukon Territory, signed
that unlawful contract as parties of
the first part, while the Northern
Commcrical Company and its trans
portation subsidiary, the Northern
Navigation Company, signed as
parties of the second part.
The White Pass Co. transferred
all its mercantile property and trade
in the Yukon basin to the Northern
Commercial Company; the Northern
Commercial Co., and its transporta
tion subsidiary, the Northern Navi
gation Co., transferred all their
steamboat and transportation prop
erty to the White Pass Co., and the
White Pass Co., agreed in considera
tion for this consideration to pay
the Northern Commercial Company
the sum of $12 per ton for every ton
of freight carried by the White
Pass Co. into the Yukon basin from
April 9, 1914, to December 31, 1920,
not to exceed the sum of $1,500,000.
That contract is now in force and
the unfortunate merchants and min
ers of the Yukon and Tanana basins
are yet paying an additional and un
'lawful excess of $12 per ton for
every ton of freight coming into
that Interior country The Northern
Commercial Co., and the White Pass
Co., in 1918, bought up the remain
ing two independent boats, operating
on those rivers, and at once increased
the freight rates on those rivers an
additional $12 per ton to enable
them to further burden the shippers
there, at their own cost.
From April 9. 1914, the White
Pass Co. has had and now enjoys a
monopoly of the entire carrying
trade upon the Yukon and Tanana
rivers, and controls the transporta
tion of all freight and passengers
from the Xenana terminal of the
government railroad. The X'orthern
C mmercial Company had had and
now has its former employees in con
fidential control of the management
of all merchandise coming to N'e
nana for the government railroad and
■there, and thus it does its share in
retarding the successful construction
of the much hated government rail
road, whose authoriziation by Act
of Congress both these companies so
vigorously opposed. In other words,
the construction of the railroad at
N'enana is now and at all times has
been under the control of those who
desire n to fail, and it has, so far,
been a failure.
The Kennecott Copper Corporation
is the incorporated name of the
Alaska Syndicate; it owns the Ken
necott and Beatson copper mines in
Alaska, also the Copper River &
Northwestern railroad, and 52 per
cent of the capita! stock of the
Alaska Steamship Company. Mr.
Stephen Birch, of Ne.v York, is the
president of all three of these com
panies, which have the same officers,
and work in concert. The Alaska
Steamship Company is united in
joint rate agreements with other
lesser steamship pompanies, but with
its greater fleet and heavier capital
ization controls the coastwise trade
to Alaska. Its control over these
transportation companies is well
shown in the various criminal charges
which have been made and sustained
by th" courts of the United States;
1 (Continued on Page Three)
I
COLES AIR TIGHT
HEATERS
RANGES
OF ALL DESCRIPTIONS
Yukon Stoves and Drums
Air Tight heaters
Any Thing in the Sheet Metal, Plumb
ing or Heating Line
Tanana Sheet Metal Works
COMING-MONDAY
WANT ADS
FOR SALE—A Singer sewing ma
chine. Inquire at Coghill’s.
LOST—Xugget chain. Liberal re
ward for return to News office.
FOR RENT—Small one-room partly
furnished frame cabin, on First
and B streets. Aplly at Ghezzi's.
Prospectors and Contractors!
Now is the time to have that tar
paulin, tent or bag made for the
seasons outfit... Bed and hat nets
a-e now readv. at small cost at
MRS. D’ORSAY’S TAILOR SHOP,
Third and A Streets.
Membership List
Nenana
Commercial Club
Anderson, Herman
Allred, Mrs. Clara
Bergman, Charles
Brown, Jess
Berggren, Ernst
Browne, F. D.
Bresnahan, E. D.
Blankfield, D.
Bowen, J. R.
Brooker, Ed
Bennett, J. F
Ball, I. B.
Brown, Erie
Coutts, ’.V. T.
Calderhead, It. W.
Campbell, X. J.
Coghill, W a.
Cooney, M. J.
Loner, Frank
Liven, R J.
Louse, Fred
Ekeland, Alf
Funk, A B.
Finlayson, K A.
Fisher, Joe
Flower, J. H.
Foster, Steve
Gagnon, Wm
Ghezzi, Alfred
Gray, £. R.
Gilcher, W. H.
Head, E. A.
Hagan, James
Hill, L. W.
Hagen, Hans
Hoev, Andy
Isabel, L. C.
Irvine, A. J.
Johnson, A. G.
Jones, Frank
Julian, W. J.
Johnson, Joseph
Jepson, Peter I
Joseph, H. B.
Koland, Knut
Ketooroky. John A.
Laughlin, E. L.
Lund, E. E
Lehr, Q. F.
Markus, George
Mortensen, Peter
Myers, R R.
Moore, Frank B
McDonald, R. s.
Martin, G. S.
Morris, R. C. ■
Nash, Martin
O’Keefe, Larry
Parks, S. E.
Pennington, G. W.
Pally, Paul
Packer, W. L.
Ryan, W. A.
Kosburg, Herman
Roth, Andy
Rodigkeit, Wm
Sborgia, William
Shaw, Harry N.
Schmidt, Carl
Schaeffer, M. A.
Slippern, J. A.
Simson, Lipman
Scott, J. H.
Sellander, C. J.
Schmidt, Pete
Smith, George A.
South'vorth, R. G.
Spira, Frank
Taylor, Frank
Tunison, B.
Thompson, Theodore
Toussaint, J G. K
Tyler, M. V.
Taylor, Wm. J.
Verhaeghe, Cyriele
Van Orsdel, J. C.
Woods, Geo. W.
Williams, E. A.
Waechter, R. I.