Hemnrd Bnily Gnteumy
MEMBER ASSOCIATED PRESS
. VOLUME 21. NUMBER 29
SEWARD, ALASKA, FRIDAY, FEBRUARY 5, 1926
PRIC171, TEN CENTS
► FLANIGAN LETTER
TISSUE OF LIES
SAY CORDOVANS
LIBEL PROCEEDINGS BE INSTI
TUTED AGAINST MENDACIOUS
PROHIBITION AGENT
FRAME’S REPUTATION VERY BAD
Committee Asked to Produce One Re
putable Alaskan Who Would
Believe Him on Oath
CORDOVA, Alaska, Feb. 5 (#>)—
Libel proceedings against D. W. Flani
gan, prohibition agent, in a civil slan
der suit against Delegate Sutherland
will be instituted in connection with
the charges made before the Senate
judiciary committee that a bootleg
ring existed in Cordova composed of
prominent and substantial citizens
named by the Delegate.
Cordovans telegraphed Senators
Cummins and Overman, through at
torneys Donohoe & Diamond, messages
stating that the charges were un
grounded and the committee was re
quested to furnish a certified copy of
Flanigan’s letter to base the suit upon.
Referring to the report that Judge
Ritchie circulated a libelous letter
concerning John W. Frame, the tele
gram challenged the committee to pro
- duce “one reputable Alaskan knowing
John Frame would accept his state
ment on oath.”
“We respectfully differ with Doctor
Wilson in regard to conditions in the
Territory. He has been misinformed
and probably induced innocently to
make false statement of Alaskan mor- j
al conditions.”
Charges Will Fall Flat
KETCHIKAN, Alaska, Feb. 5 (JP)— \
James Galen and Harry O’Neill, both ;
of Cordova and mentioned in the!
Sutherland charges as member of a!
bootleggers ring arrived here on the '
steamship Victoria bound for Seattle. |
They emphatically denied implication ^
with or knowiedge of any bootleg j
ring. Galen and O’Neill demandec
that Flanigan give them a letter de
nying he wrote the letter quoted
Delegate Sutherland and stating whj
and that he and Council were no
members of a bootlegging ring.
Flanigan signed a statement that ht
never authorized Delegate Sutherland
to use his letter in making such 2
charge.
The sentiment in Ketchikan is that
the Sutherland charges against offi
cials of this division will fall flat
because found false when investigated
before by the Department of Justice
Coal Bunkers At Tunnel
Completed Few Days Ago
The coal bunkers which have been
under construction at Tunnel for some
time past have been completed and
the bins filled with a supply of coal
which will be used in emergency cases
and by the snow outfits in particular.
The capacity of the bunkers is said
to be 80 tons, according to local re
ports.
Anchorage Whips Interior
Champs; Girls Lose Series
Wednesday arrivals in Seward
from Anchorage report the Inlet bas
ketball team which returned Wed
nesday from Fairbanks won two
games out of three games played in
their series from the Interior champs.
The Anchorage girls team, however,
was not so successful losing each of
the three games with the Fairbanks
girls.
Seven Applications Are
Received for City Jobs
Seven applications had been receiv
ed at the city clerk’s office up to noon
today for the positions of fire chief
and chief of the police department.
It is expected an additional number
will be filed this afternoon.
The Town Council meets this even
ing at 8 o’clock for the especial pur
pose of opening applications and ap
pointing men to the positions.
Weekly Gateway—$3 per year.
HICKEY MINE AT
COAL CREEK IS
AMONG THE BEST
BLACKSMITH COAL RRODUCED
UNSURPASSED ANYWHERE,
IT IS STATED.
Officials, of the Alaska Railroad
pronounce that the Hiokey black
smith coal, from which coke is made
is a better coking coal than is pro
duced elsewhere in the entire Unit
ed States. This should be quite flat
tering to Ross S. Hickey, well known
to many Seward folk, who is the
owner of the mine which is located
j on Coal Creek, just this side of
! Chickaloon, on the branch line out
j of Anchorage.
Rail officials, who are at present
in Seward, report Mr. Hickey has
secured a 100-ton contract from the
railroad but to date has made not a
single delivery, owing to the mild
winter conditions. The mines is sit
uated on the opposite side of Coal
Creek and in order to reach the
branch line, inasmuch as there is no
bridge at that point, no shipments
can be sent out from the mine un
til the river freezes over. Thus far
the river is as wide open as mid
summer, which has bene the only
reason of non-delivery of any portion
of the contract. A recent report
from Mr. Hickey stated he figured a
brief cold snap would soon set in,
and that .s'hipments wfould then
start. It is pointed out, one cold
night and a sheet of ice, sufficiently
strong enough to freight over, would
result. The hauling will be accom
plished with horses and sledges.
A new market will shortly be af- ,
forded Mr. Hickey’s coal, it is stat
ed, with the beginning of develop- ;
ment in the Fairbanks district by <
the large companies. In time, it is i
believed by conservative business <
men, the Ross Hickey mine will be (
a big factor in the coal mining in- i
dustry of the Territory. It is the <
only operating blacksmith coal mine
and one of the few claims of this <
nature in Alaska.
[
32 LOSE LIVES IN
FIERCE STORM
SWEEPS COAST
NEW YORK, Feb. 5 (JP)—North
i eastern United States is struggling to
free itself from the grip of the worst
snow storm of the winter, which last
ed 24 hours and resulted in 32 deaths.
Eight persons were killed by the col
lapse of a building at New Britain and
eight perished at sea.
Five ships are reported in distress
^nd all trains are several hours late.
Foundry At Anchorage
Operating Steadily
With Crew of Seven
The foundry, which the Alaska
Railroad operates in the Anchorage
yards, has been working steadily
since its completion with an aver
age crew of seven men on the pay
■ roll. This ne w industry has proven
a decided success as is attested by
the numerous castings turned out,
which in former years, were all sup
plied from the States. A success
in that a large saving is made by
the railroad and additional work
found for Alaskan residents.
Practically all gray or cast iron
parts, brass and bronze work, is
made in the foundry, which is as
modern as any plants of the same
size found in the States. A large
proportion of scrap material is nat
urally remelted in the big cupola but
a considerable amount of pig metal
is also used.
BOY SCOUTS NOTICE
Due to the temporary change in
schedules at the S. A. C., Ptarmigan
troop No. 1, American Boy Scouts,
will meet at the residence of E. F.
Jessen, assistant scoutmaster at 7:30
o’clock this evening. Following the
regular weekly business meeting the
troop will, adjourn to the gymnasium
where exercises and games will be
held.
Weekly Gateway—$3' per year.
PROMINENT MEN
VIGOROUSLY DENY
WILSON CHARGES
—
PUBLIC OFFICIALS AND CHURCH
DIGINTARIES UNITE IN PRO
TEST AGAINST CHARGES
ALASKANS ARE LAW ABIDING
Bishop Crimont, Head of Alaskan
Catholic Church, Says State
ment Was "Stupid”
JUNEAU, Feb. 5 (/P)—Acting Gov
ernor Karl Theile, Commissioner of
Education Lester D. Henderson, May-1
or Connors, Bishop Crimont, of Ju
neau, Catholic Bishop of Alaska, and i
pastors of the local Presbyterian, I
Episcopal and Catholic churches here
denied the charges made by Doctor |
Clarence True Wilson, secretary of
the Methodist Christian Temperance
Union and Board of Public Morals,
before the Senate Committee hearing
in Washington, that “vice here in
Alaska was the worst in the world.”
Governor Thiele said: “Alaskans
are a lawabiding people with morals
as high as anywhere in the world as
everyone familiar with conditions here
knows: I know to my personal knowl
edge that Wilson’s attack is unjusti
fied and without foundation of facts.”
Commissioner Lester D. Henderson
said: “The statement that moral con
litions here are worse than in the
greater part of the United States and
:hat Alaska officialdom is in league
with law violators is prompted either
jy a desire to wilfully misrepresent
)r ignorance.”
Bishop Crimont said: “I raise my
ndignant protest against the slander- j
>us and stupid utterances reported in
he charges against Alaska official
lom. Conditions, morality and law i
>bedience are good or better than ex
sting elsewhere in the United States :
md most of civilization.” i
Similar statements were made by i
>ther preachers. i
SEA LEVEL MINE
IS TAKEN OVER
BY PAPER FIRM
ALASKA PAPER COMPANY WILL
OPERATE WELL KNOWN SUL
PHATE MINE.
The historic Sea Level mine, so
well known to every resident of
the Ketchikan mining district, has
passed from the hands of its for
mer owners and the deed as ren
dered names the Alaska Paper Mills
as the new owners, announces the
First City News.
This once active and promising
mine will pass into the limbo of time
as a “gold producer,” and the iron
pyrites or sulphides which the min
eral veins contain, will be the chief
product to be extracted.
C. R. Berry, chief engineer for the
Alaska Paper Mills, states that the
sulphides contained in the iron py
rites is one of the best constituents
used in the sulphite process of mak
ing chemical pulp. Even in ground
wood paper mill, Mr. Berry states,
it is necessary to introduce a small
percentage of sulphite pulp and in
stead of purchasing this from an out
side pulp mill, in the large modern
news print mills, it is now manufactur
ed in the one mill.
At the start, about five tons of
the sulphides will be required for the
local mill; but, owing to the stead
ily increasing demand by other mills
for the chemical product, the mine
may be operated to produce it for
mills in the states. ♦
The district south and east of Ket
chikan is of an unusually high percen
tage of sulphide ore. Pure sulphur is;
also employed in the process, most
of which is secured from Texas and
Louisiana; iron pyrites, however, are
preferred, and in combination with
limestone, are blended with the cal
cined lime rock which is called sul
phate of lime.
some considerable limestone will be
employed in this process, the compa
ny being now busy locating some ex
tensive deposits adjacent to its scene
nf activities on Thorne Arm near Ket
ehikan.
OLMSTEAD TRIAL
REVEALS MANY
SECRETS RING
OMSTED THREATENED TO SINK
BOAT RENTED BY ATTORNEY
TO PROHIBITION AGENT
“INTERFERED WITH BUSINESS”!
Advised Boat Broker to Tell Newspa
per Reporter Nothing Concerning
Hi-Jacking Beryl G.
SEATTLE, Feb. 5 (/P)—Prohibition
Agent Behner testified today in the
Olmsted liquor case that Wilbur Dows,
a customs broker, represented himself
to him on January 9, as the agent of
Pete Marinoff and Roy Olmsted.
Behner said that Dow told him he
had liquor boats for sale, one of which
was the M-855, owned by Marinoff,
though not registered in Marinoff’s
name. Dow told Behner he handled
all of Olmsted’s business regarding
the boats and said “Olmsted and Mar
inoff were the only two whose business
he cared to handle because the little
fellows were too prone to talk.”
Behner testified that he heard Dow
tell Olmsfed on a tapped telephone
wire October 27, 1924, that a news
paper man named Sullivan wanted an
interview with him. The conversation
ran ai follows:
“Olmsted—What does he want to
interview you about?”
“Dow—I think about the Beryl G. .
iiigh jacking.”
“Olmsted—Well, then you don’t ,
know anything about it.”
“Dow—No, but if I was Cruickshank .
[ might.”
Cruickshank is the Canadian Inspec-1
:or of Police who investigated the hi
lacking of the Beryl G. and the murder
)'f Captain Gillis and his son.
R. C. Jackson, a Federal prohibition
nspector, corroborated the testimony j
)f other government witnesses as to
he activities of the Olmsted organiza
ion. ~
T. D. Pasre. a Seattle attnrnpv te«-1
tified that he rented his speed boat
to a prohibition agent to spy on the
rum runners during the summer of
1924. That during July or August of
that year it was used in such service.
District Attorney Revelle asked:
“Did Olmsted come to your office
regarding the boat?”
Page said, “yes, he came in. I don’t
recollect whether he referred to me as
a stool pigeon or a snitch, but it was I
one or the other. I said, ‘just what do
you mean?’ He said, ‘I refer to that |
boat of yours.’ I said, ‘You mean I
can’t do that?’ He said, ‘That’s ex
actly what I mean.’ I asked, ‘Why, is
it interfering with your business?’ He
said, ‘That’s it; I tell you, Page, if it
continues I will sink the damn thing.’ ”
New River Route for
Lower River District
Probable Next Year
Practically all of the machanical
■equipment of the Alaska Railroad
river steamer service has been over
hauled in the mechanical shops at
Anchorage and long since been com
pleted ahead of regular schedule. This
also includes all the turbo genera
tors and pumps.
Though nothing authentic could be
obtained it was stated to The Gate
way yesterday it is quite probable a
new river route, in the lower river
district, Interior, would be inaugur
ated next spring.
Beautiful Masonic Jewel
Presented J. P. Hannon
-*
A beautiful past master’s jewel was
presented J. P. Hannon by the Sew
ard Masonic lodge at the recent
meeting of the organization, H. V.
Hoben, W. M., making the presenta
tion in behalf of the lodge. The jewel
attached to a watch fob is a handsome
piece of work, done by Orlander, the
Jeweler, and to say that the recipient
is delighted with the gift goes with
out saying. The greater portion of
Mr. Hannon’s time since he received
the gift in appreciation of his serv
ices while he held the office, has been
occupied in exhibiting it to his many
friends.
Weekly Gateway—$3 per year.
U. S. S.S. BOXER
EN ROUTE SEWARD
, RAILROAD CARGO
The U. S. S. Boxer, Capt. Whitlam,
departed from Seattle January 31 di
rect for Seward, according to local
advices received by The Gateway yes
terday. The Boxer has on board 221
tons of railroad freight in which is
included 100,000 feet of lumber and
miscellaneous supplies.
It is estimated it will take the Box
er about 13 days out of Seattle to
reach this port, or about a week from
today. Prior to the vessel’s south
bound departure about 310 tons of
car wheels and scrap iron will be
loaded aboard for disposal in the
States.
COOUDGEPLANS
FOR AIR BOAR!)
NOT PERFECTED
WASHINGTON, D. C., Feb. 5 (/P)—
Chief of the Air Service Patrick told
the Senate Military Committee that
the recommendations of President
Coolidge to the Air Board “didn’t go
:ar enough.’’
Colonel Mitchell told the House
Military Committee that the present
situation is “a terrible mess.” He
idded that the air personnel is on duty
vith army men when it should be
urned to prevent armies coming to
gether. He urged the committee to
;ive the Air Power a specific mission.
Je declared that $65,000,000 would be
m adequate annual expenditure.
CHEMICAL AND
DYE FIGHT IS
RESUMED IN l!. S.
WASHINGTON, D. C., Feb. 3 (/P)—
The fight of the Federal administra
tion to cancel the sale of German
chemical and dye patents, trade marks
and copyrights to the Chemical Foun
dation, Incorporated, was carried to
the Supreme Court after the federal
district court for Delaware and the
court of appeals for that circuit had
given adverse decisions.
Pointing out that President Harding
had directed the suit to recover pos
session and that his position had been
supported by three attorneys general,
the Department of Justice sought to
have the sale set aside on the ground
among others that the price obtained
was wholly inadequate, that the Alien
Property Custodian had no authority
to make it, that the transaction was
an unlawful conspiracy and that it had
resulted in a restraint of interstate
and foreign commerce in violation of
the Sherman anti-trust laws.
Counsel for the corporation con
tended that Frank L. Polk had been
fully empowered by President Wilson
before the latter went to Paris, to au
thorize Mitchell Pilmer, alien prop
erty. custodian, to make the sale pri
vately without competitive bidding to
a corporation representing the chem
ical and dye industry of the country,
according to a plan worked out by Mr.
Palmer after Congress had provided
for the confiscation of the properties,
the plan having been approved by
President Wilson to Americanize the
chemical and dye industry. Many of
the patents, trade marks and copy
rights were valueless, they asserted,
and the others required large expen
ditures of money to develop owing to
the practice of the Germans not to
disclose in their patents sufficient in
formation to make them workable,
thus requiring expensive experiments.
For these reasons it was impossible,
it was asserted, to determine the act
ual market value of the patents or to
Bnd purchasers in a competitive bid- ]
ding. It had therefore been deter
mined, with the approval of the Presi- ,
dent, to turn the properties over to a ,
corporation which would be required
to grant the Federal government the ,
free use of the patents and would
guarantee that all American interests |
sv-hich desired to use them should be !
granted licenses under like terms,
rhe corporation was not a money mak
ing affair, it was asserted, but was
controlled by a committee which had
ao financial interest in it, its officers
serving wthout salary, merely to per
MAYOR L. V. RAY
SAYS ALASKANS
GOOD CITIZENS
HARDING AND CONGRESSIONAL
PARTIES THOUGHT LAW
ENFORCEMENT GOOD
WILSON WRONGLY INFORMED
Present Agitation Based Upon Desire
to Get Friends on Federal Pay
rolls in the Territory
In a statement issued to The Daily*
Gateway today by Mayor L. V. Ray,
which has been sent to the Associated
Press service in the States, in answer
to the attack being made at Washing
ton, D. C., as to the moral character
of Alaskan citizens, the message in
tact is published below:
“Seward, Alaska, Feb. 5, 1926.
“Associated Press, Seattle, Wn.
“L. V. Ray, three times mayor of
Seward, president of the first Alaska
senate, active in war work, and chair
man of the Red Cross, jurisdiction of
Seward Siberian boundary, resents the
continued malicious slanders by un
informed and ill-advised reformers as
to the character of the citizens of
Alaska. Ray declares that the Hard
ing party and the Cambrai congres
sional party in 1923, Senator Jones,
Congressmen Hadley, Treadway, Free,
White and Senator Dill, all Seward
visitors, know law enforcement excel
lent. Surprised that any attention,
is paid to malicious, vindictive gossip.
Assume that present agitation is based
upon a desire to get friends upon
the Federal payroll. Doctor Clarence
True Wilson evidently obtained his
information from habitual liars. Dr.
Wilson is invited to spend two
months in Seward and make a per
sonal investigation of the daily lives
and habits of our citizens, who sup
port three churches and pastors there
of and who welcome misguided stran
gers. He also refers to Mrs. W. H. C.
Goode and Mrs. Luther Taylor of the
ATotTl 1 of oVnirnVi
sonal investigation selected Seward
for the Jesse Lee Home site.
“Seward Gateway.”
_ -4
Premier Coal Mine On
Moose Creek, Flooded
According Local Report
The Premier coal mine on Moose
Creek is flooded and as a conse
quence operations ceased a week ago,
according to information brought to
Seward on the last train from the
Inlet. It appears that the old pump
which has -been used in the coal mine
in the past could not expell the leak
age which has been gaining steadily
of late. The water finally rose to a
height which prohibited carrying on
of actual operations. A new pump
is en route from Fairbanks and is
expected to be installed shortly.
Monthly Meeting of Fire
Volunteers, Held Tonite
Following the special meeting of
the Town Council this evening which
is being held for the purpose of se
lecting a fire chief and a chief of po
lice, the regular monthly business
meeting of the volunteer fire depart
ment will be held. It is not believed
the meeting will be called to order
until about 9 o’clock as the common
3ouncil meets at 8 o’clock.
Railroads willed only 149 persons
in the L nited States during 1924,
while autpniobiles killed more than
10,000.
nit the corporation to function.
The government insisted that the
same results so far as the chemical
ind dye industries were concerned
;ould have been obtained had the gov
ernment retained title to the proper
;ies instead of tipping them over to
i private corporation, and particu
arly challenged the sales which Fran
cis P. Garvin, as alien property cus
todian, had made to himself as head
Df the corporation, after Mr. Palmer
iad become attorney general. It in
sisted that Congress had intended that
Lhe properties should be held by the
ilien property custodian until it made
provision for their disposition.