VOLUME 19, NUMBER 270
SEWARD, ALASKA, TUESDAY, NOVEMBER 18, 1924.
PRICE TEN CENTS
ANCHORAGE CHAMBER
GIVES OUT REPORT
ON ANCHORAGE DOCK
At a recent meeting of the Anch
&ige Chamber of Commerce, the
report of a special committee was
made, and also was presented to Gen
eral Manager Noel W. Smith, to take
to Washington for his consideration.
The committee went into the dock
question exhaustively and showed by
figures compiled that it is cheaper
for Anchorage merchants to have
freigSt hauled by water than over
the railroad. The Gateway has no
comment to make on the report oth
er than that it believes all tonnage
possible should be given to the rail-,
road. If 60,000 tons has been haul
ed over the Anchorage dock then
the railroad has lost $120,000 at $2.00
per ton. ^
The report is printed below and is
well worth your perusal:
“Complying with your request at
our recent conference in Anchorage
we herewith submit our reasons lot
opposing the permanent closing oi
the Anchorage dock and tor asking
for an early extension of the dock so
as to permit the larger ships to make
this a regular port of call. I*, is our
belief that the operation of a suitable
dock at Anchorage would be a benefit
to the Alaska railroad as well as to
A^L borage and the whole of the ter
ritory served by the railroad.
“In the first place, it is understood
that the reasons given for tue propos
ed discontinuance of operation of the
dock is because it involves a loss to
the railroad and that the closing of
the port would naturally duvet t ton
nage to the railroad between Seward
and Anchorage.
“For the purpose of this discussion
it may be well to recall tnat the rate
by steamers on freight N. O. I. B. N.,
Seattle to Seward, is $13,000 per ton,
and Seattle to Anchorage, $15,00 per
ton, weight -or measurment, an ap
parent differential of $2.00 per ton.
To adjust this differential to a
s light weight basis, for purposes
of comparison, it is necessary to add
10 per cent., thus giving a differen
tial of $2.20 per ton. Rail rates be
tween these two points are, 1st class,
$21.60 per ton; 4th class, $13.60; B
class, $9.60; E class, $4.80. This
shows a difference in favor of the
ocean haul of $2.60 per ton taking
even the lowest class of the railroad
The ocean distance between the two
points is about 220 miles and it is
about 111 miles by rail.
“With regard to the question of loss
from the operation of the Anchorage
ci^k, the following points should be
given consideration. All the oper
ations of the railroad are conducted
at a loss. Why should anyone par
ticular operating unit be singled out
tor discontinuance unless it can be
shown that no good purpose can be
served by such operation or that the
deficit therefrom can be overcome by
the discontinuance. While it is true
that by the closing of the dock the
l^icit from operating that particular
unit will be eliminated, the other re
sulting losses to the railroad will be
productive of a still greater deficit as
will appear later in this discussion.
“It is our belief, and we are confi
dent that the records of the railroad
will confirm this, that the Anchorage
dock has repaid its cost if it be given
credit for the railroad and other gov
ernment freight it has handled with
out charge. From the time the dock
was placed in operation, in 1919, until
rhe close of the year 1923, this
amounted to approximately 60,000
tdd--. The dock has never been cred
ited for this, but on the other hand
it has been charged with every con
ceivable item of service performed or
furnished by other departments of
the railroad, such as switching, crane
service, lighting, wrater, depletion,
overhead, etc. When such charges
are made against its operation, it
should most certainly be given cred
it lor the services it renders to the
other departments. In spite of such
^.barges, during all the years of its
operation, except 1924, it has consist
ently shown a net operating profit.
“To select 1924 as a basis for show
ing operations of the dock is unfair
and does not furnish a true basis for
comparison. The expense for this
year was regulated upon a basis of
greater business than wras done. This
shortage of business for the dock,
affcile from the year being one of ex
ceptionally light tonnage as a whole,
was due to a deliberate effort • made
by the railroad to divert tonnage to
the rail haul between Seward and An
chorage. This was done by raising
the wharfage rate in Anchorage to
|2.50 per ton while retaining the old
rate or $1.50 at Seward; also by
eliminating at Seward the quantity
requirement for absorption of wharf
age on outbound coal shipments and
retaining the requirement at Anchor
age. Other tariff rates, to be referred
to later, were made to favor the rail
haul. These things constituted direct
discrimination by the railroad, a prac
tice which the government would not
tolerate in the case of a private cor
poration.
“As to this diversion of tonnage
from ocean to rail between these
points, this is fundamentally and eco
nomically wrong because of the physi
cal conditions. If rail rates are
named even to yield cost of the ser
vice, it would mean heavy increase in
costs to the consumers, with a conse
quent effect of retarding the develop
ment of the entire railroad belt. On
the other hand, if rates are made as
low as the steamship rates, there
would be a heavy loss to the railroad
in operations, directly affecting the
success of the road and throwing an
unnecessary loss on the government.
This loss would be far greater than
any which might be sustained thru
the operation of the Anchorage dock
and could never be overcome. The
greater the tonnage handled, the
greater the loss, either to the consum
er or to the railroad. Why should
such an unnecessary loss be placed
on either?
“Another source of additional loss
on the diverted shipments arises
through two full and complete extra
functions of handling, sorting and
checking all freight consigned to An
chorage involving an extra cost of
not less than $2.25 per ton.
“Further, the equipment and physi
cal conditions of the line between
Seward and Anchorage precludes the
satisfactoy, economical and prompt
handling of freight between these two
points, on even the comparatively
small tonnage of the present year.
Ordinary weekly cargoes of 200 to
300 tons via Seward are from two to
seven days reaching Anchorage, as
against 24 hours via steamer. As a
recent instance of these delays, a
shipment of two cars of feed was de
livered by steamer to rail at Seward
on Oct. 26th; one of the cars was de
livered to the consignee in Anehor
age on October 30th and the other on
October 31. This is only typical of
regular delays and affects all points
on the line from Anchorage north.
From Oct. 26 to Nov. 10, 1923,
4100 tons of freight moved over the
Anchorage dock without delay. Had
it been necessary to handle this car
go by rail between Seward and An
; chorage, when would the shippers
| have received their freight?
“Such forced diversion of traffic
would surely result in defeating one
of the principal purposes of the build
ing of the railroad, viz., the opening
of the coal fields. Rates on coal from
the Matanuska field to Anchorage are
$1.00 per ton and to Seward $2.00 per
ton. Ocean rates to • Alaskan and
Puget Sound ports are the same from
Anchorage as from Seward. There
j fore, shipments by rail for delivery
i to ship at Seward produces an addi
tional coot at destination of $1.00 per
ton and penalizes the Alaska coal in
dustry to that extent. A constant
and determined effort is being made
by the Alaskan mines to supply all of
the coal used in Alaska. To do this
involves direct competioion with Brit
: ish Columbia and Australian coa'. The
above penalty of $1.00 per ton would
certainly result in deci eased ship
ments of Alaska coal, with a direct
t lfect on tne railroad of decreased
tonnage and general retardation of
tlui A last an coal fields.
“Touching further on the mailer oi
disc' imoiation against the Anchor
age clock in efforts to create tonnage
(not revenue) for the rail haul, it
may be noted that in addition to the
; ne-taMy j *a,ced on coal ahlome?. is as
ji'viously referred to, the railroad
i has existing tariffs on shipment5: or
| ore and concentrates naming ■ qni
:. ' cut bound through Seward a no
! Anchorage; the same applies to in
| bound shipments of certain commodi
1 ties, such as mining machinery, agri
i cultural implements and fertilizer. In
| other words, the railroad offers to
haul these commodities the 114 miles
between Seward and Anchorage for
nothing simply to get additional ton
nage. Certain ore shipments in 1924
j Neuana, Alaska, to Selby, California,
1 under this equalized tariff, were de
liberately liauled by the railroad
through to Seward when the steam
ship company h*^d prepared and was
ready to take delivery at Anchorage.
“And at this time, in passing, wre
would like to say that in our opinion
one of the raost vital needs ot the
WOMAN’S CLUB WILL
ENTERTAIN NOTED ARTIST
On Thursday, Nov. 20, from 2:30
to 5 o’clock the Woman’s Club will
hold a public reception at the home
of Mr. and Mrs. Alvah Eames to in
troduce Mr. Von Emple, a distinguish
ed artist, who is visiting in Seward.
Mr. Von Emple will exhibit several of
his paintings. Tea will be served.
The Woman’s Club wisTies to extend
a special invitation to the men of
Seward to meet Mr. Von Emple, who
may locate here with his studio.
GENERAL PERSHING TO
REPRESENT THE U. S.
WASHINGTON, Nov. 18.—General
Pershing, with the rank of ambassador
extraordinary and minister plenipo
tentiary will head a special mission
which will represent the United States
at a celebration in Peru next month
commemorating the centennial of the
battle of Ayaoucho.
BUTLER VISITS PRESIDENT
WASHINGTON, Nov. 18.—Senator
Butler, recently appointed to fill the
vacancy caused by the death of Sena
tor Henry Cabot Lodge is a guest of
President Coolidge at the White
House.
BOOTLEGGERS REVEL
IN THE SPIRIT CITY
SEATTLE, Nov. 18—Federal prohi
bition agents broke up a midnight
party at the home of Roy Olmsted and
16 guests including several women
were gathered in. A case of bonded
whiskey and some beer was gathered
in as evidence. Olmsted is known as
the leader of Puget Sound bootleg
gers, and is said to have been under
surveillance by the police for several
weeks.
AMERICAN LABOR IS
WILLING TO JOIN IN
GREAT MOVEMENT
EL PASO, Texas, Nov. 18.—Ameri
can labor is ready to join in a world
wide labor movement if by such co
operation it can be assured of a basis
which will enable the United States
to maintain its integrity, Samuel
Gompers declared in a formal state
ment at the American Federation of
Labor convention here this aftei
noon.
Mr. Gompers said that labor would
never get what it was entitled to un
til it combined with the laborers of
other nations.
railroad, for its own good and that
of the community tributary to the
line, is a competent rate expert in
order that these unjust and discrimi
tory rates may be revised and pro
per rates established for all points.
The tariffs contain a great many in
consistencies and need a thorough re
vision.
“What may be called the strategic
value of the dock to the railroad and
to practically all of the territory serv
ed by it, can hardly be over estimat
ed. The line between Seward and
Anchorage, due to the heavy moun
tainous character of the country, is
subject to frequent and costly delays,
especially in the spring and fall
months, on account of floods,
snow' storms, and snow and land
slides. An interruption occurred in
the fall of 1923 lasting six weeks,
and during this period the steamers
all came into Anchorage and dis
charged their cargoes, including the
4100 tons previously mentioned as
being moved in twro wreeks. There
was no interruption of service north
of Anchorage, nor via steamers south
bound from Anchorage. Had there
been no dock at Anchorage, there
v/ould have been such a congestion
of freight, mail, express and passen
ger traffic as would have caused se
rious losses not only to the railroad
but also to all the people served by
ihe line, including interior Alaska.
The dock is necessary to insure con
stant and prompt through traffic of
all kinds, and especially so in the
fall and spring when all of this traf
fic is usually heavy. For the rail
road between Seward and Anchorage
to efficiently and cheaply handle,
without undue delay, all traffic of
ferings, both incoming and outgoing,
it has been authoritatively claimed
would involve an expenditure of
(Continued on Page Two)
10 DEAD, MANY MISSING
AS RESULT OF STORMS;
HUGE PROPERTY LOSSES
NEW YORK, Nov. 18.—The cold
wave which swept down on this city
last night caused the deaths of three,
and two deaths from exposure are re
ported from New England points.
The entire New England coast is
shivering in the grip of the blizzard.
Leaving in its path a mounting toll
of death and disaster, the great gale
which for 48 hours has held the At
lantic seaboard in its icy grip appear
ed today to have passed on to the
eastward. Ten persons are dead and
many are missing with huge property
losses.
HUGHES HAS A COLD
WASHINGTON, Nov. 18.—Secre
tary Hughes was kept at home today
by a cold and forced to cancel his en
gagement to speak over the radio to
night in connection with the Pan
American radio night program.
ANTI-SEMITIC AGITATORS
DESTROY JEWISH STATUE
BERLIN, Nov. 18.—A marble mon
ument to Rachael erected in 1582 on
the Pfaueninsel in Potsdam, was de
stroyed by anti-semitic agitators.
ALASKA REPRESENTED
AT COAST CONFERENCE
SEATTLE, Nov. 17—John C. Mc
Bride of Juneau, collector of cus
toms for Alaska, is here in atten
dance on the conference of Pacific
Coast Customs Collectors. The con
ference will pay particular atten
tion to ways and means to control
liquor smuggling.
AMBASSADOR HERRICK
IS TAKING VACATION
CHERBOURG, France, Nov. 18.—
Ambassador Herrick arrived here to
day after a vacation trip to the United
States. He said he had no intention
of abandoning his post at Paris.
CAN COMPANY EMPLOYE
FOUND DEAD, A SUICIDE
SEATTLE, l\Tov. 18.—Charles Paul
j son, an employe of the American Can
Company was found dead yesterday.
SECRETARY WILBUR
ASKS APPROPRIATION
BE USED BY THE NAVY
! WASHINGTON, Nov. 18—Secre
tary Wilbur this afternoon appeared
before the House Appropriations’
Committee with the request that an
appropriation for the fiscal year of
1925-26 ox S?<23,000,000 be alloted to
the Navy. This sum is necessary,
said Wilbur if the navy is to be main
tained at an equal ratio with that of
Great Britain.
AIR-BICYCLE WHICH
WILL TAKE THE AIR;
GERMAN INVENTION
BERLIN, Nov. 18.—An air bicycle
which will enable a man to fly with
less c-ficrt than is required in walking
has been invented by a prominent
German aei’onautics engineer. The
machine is possible by the invention of
a new (propeller which it is claimed
i dispenses with an airplane’s motor
and can be run by man power alone.
It is said the inventor has reached an
altitude of 1500 feet in a trial ma
chine and that a speed of 60 to 70
miles an hour can be maintained.
SITKA MAN IS DROWNED
WHILE SKATING ON LAKE
Roy Nelson, employed in the W. P.
Mills store at Sitka, was drowned
last week while skating on a small
lake near that town. Nelson was
alone at the time, and parties hear
ing his calls for help rushed to the
lake. A man named Beauchamp
reached him and was pulled into
the -water, Nelson taking a death grip
pulling Beauchamp under water.
When Beauchamp was practically ex
hausted, Nelson suddenly released
his hold and sank. Beauchamp reach
ed the ice and securing a long pole
’•might vrei«*''T' « i to the surface
here : 1 • ' him
„r. futile
Chamber Entertains Many
Propositions of Interest
Practically every chair at the long
table in the Grill banquet room was
filled by members of the Seward
Chamber of Commerce today, inter
est in the civic organization apparent
ly increasing instead of diminishing,
and has been customary in previous
winter sessions. Much credit for the
attendance is due President C. C.
Hinde and Secretary J. P. Hannon,
who allow few idle moments to inter
vene once the meeting is called to or
der. The menu today was as follows:
Puree of Bean Soup
Club Steak with Mushrooms,
Creamed Carrots 1
Browned Potatoes
Cocoanut Custard Pudding
Coffee
The meeting was called to order
by President Hinde, the minutes of
the previous meeting being read by
Secretary Hannon.
A communication was received from
Assistant Manager H. Horn of the
Alaska Railroad stating that the de
partment had 550 ft. water frontage
to lease for industrial sites.
A communication was received from
the Valdez Chamlt r of Commerce
asking the Seward chamber to indorse
a petition to Col. Hartmann, asking
that Capt. Lloyd C. Parsons, com
manding officer for this division of
the Washington-Alaska military ca
ble and land lines be retained another
year. Capt. Parsons’ term of foreign
service has expired and it is desired
to retain his services. A committee
was named by the President to take
up the matter with the Valdez cham
ber.
A communication was received from
Deer Lodge, Mont., asking for the
names of curio dealers in Seward.
The committee investigating the
site for the proposed Jesse Lee Home
reported progress. Rev. R. V. B.
Dunlap stated that he had looked over
several sites offered and had found
one especially suited for the purpose
just north of the city limits to the
left of the railroad track.
The committee appointed to exam
ine the proposition submitted by F.
J. Cotter, of the Alaska Weekly, was
continued.
A communication was received from
Henry O’Malley, fish commission, lo
cated at Seattle, in answer to the 84
hour closed period proposed for Re
surrection Bay, in which he stated
that inasmuch as he had failed to see
fish in any numbers in the streams
about Seward during his visit last
August, and in view of the fact that
eggs for hatching purposes were be
ing imported from Ketchikan, he be
lieved that it was to the best inter
ests of the fisheries to adop the clos
ed period recommended. Mr. O’Mal
ley’s communication was very positive
in its statements and gave little satis
faction to the members assembled.
He, however, intimated that his mind
was free from prejudice in the mat
ter, and he might be shown.
Hugh Dougherty proposed that the
Chamber and each member of same,
write a letter of appreciation to Col.
James G. Steese, head of the Alaska
Road Commission, and to Delegate
Dan Sutherland, thanking them for
their efforts to improve conditions on
Lowell creek.
Specifications for a 64-page book,
advertising Seward and Resurrection
Bay, was submitted to the chamber
by Jack Peterson, of the Gateway,
and the matter was referred to the
finance committee for further action.
A. E. Rucker asked the Chamber
for illustrations of Seward and vicin
iy to be used in the Tourist numbers
of the Pathfinder. The matter was
referred to the finance committee
The Pathfinder also submitted a
proposition for advertising to the
chamber, on the same basis as last
year, the chamber to solicit advertis
ing from our merchants and receive
an advertisement for the city free.
Several other matters were talked
over before adjournment until next
Tuesday.
UNIDENTIFIED BANDIT
KILLED BY MERCHANT
SEATTLE, Nov. 18.—An unidenti
fied bandit was shot and killed last
night in a pistol duel with W. Wir
kowski, proprietor of a grocery store
on Interlaken boulevard. The bandit
walked into the store and ordered Wir
kowski to throw up his hands. Instead
of obeying the grocer grabbed a pis
tol and at the third shot downed his
man.
PROCEEDS INAUGURAL
BALL WILL BE FOR
PURPOSE OF CHARITY
WASHINGTON, Nov. 18.—The pro
ceeds of the inaugural ball to be held
in the White House March 4, with
the President and Mrs, Coolidge at
tending, will be turned over to char
ity organizations.
WILL VOTE ON FRANCHISE
The voters or' Anchorage will cast
their ballots at the regular election
called for April, for or against a pro
posed franchise to be given a newly
organized light company.
LOS ANGELES MURDERS
ARE PUZZLING POLICE
LOS ANELES, Nov. 18.—Albert
R. Rosenblum, a real estate operator,
was found murdered here under cir
cumstances similar to the recent kill
ing of Harry 1. Katz. The police are
puzzled over the crime and believe a
Whitechapel murderer is loosed upon
the city.
COOLIDGE CHAIRMAN
OF AMERICAN LEGION
INDIANAPOLIS, Nov. 18.—Presi
dent Coolidge has accepted an invita
tion to serve as chairman of an hon
orary committee in the American Le
gion campaign to raise $5,000,000
as an endowment fund to care for
orphans of world war veterans and
for disabled world war veterans.
EIDER IN PORT
The Bureau of Fisheries boat Eider,
Capt. Andy Beck, a well known old
timer in command, arrived in Seward
today, and took on fuel and lubricat
ing oil at the Standard dock.
CITY COUNCIL HOLDS MEETING
At the meeting of the city council
last night, Martin Lanning, fire chief,
was given temporary police powers.
A resolution was adopted appoint
ing J. P. Hannon an agent of the city
under Chap. 97, Sec. 45, Ses. Laws of
1923.
No bills were passed.
GOVERNOR’S PROCLAMATION
The governor’s proclamation desig
nating November 27 as a day of
thanksgiving and prayer was receiv
ed on the last boat and will be pub
lished tomorrow.
VALUABLE LEAD FOUND
E. J. McCarty, who has been do
ing some prospecting at the head of
Fairbanks creek, during the last few
months, has traced his lead some
distance. A trial assay was made
and the gold values were 14.76
ounces of gold; 493.50 silver. Mc
Carty is well pleased with the show
ing and intends to continue the work
I during the winter and next spring,
prospect it thoroughly.
JOY RIDERS DIE AS"
AUTOMOBILE WRECKS
SEATTLE, Nov. 18—Mrs. Joseph
i ine Bastunaro and Mrs. Louisa Trave
■ la, one divorced and the other seeking
divorce, and each leaving two chil
' dren were killed in an auto accident
early this morning while joy riding
with Andrew Sinnemore of Everett,
and Adolph Jaeconina, a Seattle res
' taurant man, both of whom were bad
1 ly injured. Both men were married
and the accident has caused somewhat
of a sensation in the Italian colony.
OLDTIMER GOES BLIND
According to word received from
the 12-mile roadhouse, on the Chat
anika-Circle trail, Steve Grady, a
trapper, has gone totally blind. He
will come to Chatanika on the next
mail stage and will probably go Out
side to secure medical treatment. Mr.
Grady was in the States some time
ago, and was told that a cataract
was forming on each eye. However,
it was too early to operate at that
time, and Mr. Grady was told to come
back later.
_
JUNEAU HAS HIGH WINDS
A wind storm with a velocity of
34 miles per hour was experienced
it Juneau last week. Windows were
smashed, roofs damaged, fences
blown down and hundreds of dollars
worth of plate glass destroyed. The
building owned by the Juneau Motor
Co. was shifted on its foundation and
two men were injured by flying glass
and shingles.