The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-07-24
THE COOK INLETCOAL.
Exposure Of What Looks Like
. Barefaeed Swindle.
THEaG . NO COAL N ALASKA.
Tee sehs0ses Tsssa - Dsai essse y
Wyshssas MIns-Dspss sssshe -
casfessnse go 1saoes.
Ca rrssessse chrea!eiA

ssn Yrssesseo Chsoa.eiA
The Aiaska Cosi Company sesms 20 D
oue a. the numerous wildcat schemes OF
rpceus times. Recent Developments IN
she condnct Of tie Affairs Of the company.
and the methods employed in aoassng ths
dock show . isxity which Is u hoped -
rare in business circles.
This company was one Of the Pct meas
ures Of slss deshro1ed management OF the
Pscsse bank, and II il claimed that this
ssses,ess concern 10 . heavy debtor 70 the
hank, the amount bssng placed - high -
oH.0o0 Tho bank has also guaranteed
some PORTIONS Of the stock. u not Al. 20
the payment OF 10 per cent rear Tor ten
pears.
inst What the real status Of the coal
company II no human being probably
knovs. The Alaska Coal Company uss
Incorporated in the county Of Alameda on
Dscsmhsr %, fscs1 The capatai stock vas
placed ct 1905. on. in 10000 shares at 80
each. The articles of incorporation state
Ne offsets Of tbs corporation TO Be the
development OF coal deposit on kzchek-
mack bay, Cooks Inlet. Alaska The
sneorporntors were B. z Handy and D. G.
GRAY. then and now in the restauraDs
business in this city; e. n. Patterson.
uhysician. and w. n. Craig. . dentist,
both Of Oakland, and /. b. Hatch. an In
eursncs agent OF San Francisco. IL Vas
organized with w. n. Esstland - presi-
dent. J. A. Bradley vice president. w. =.
Decker treasurer and s. d. Eastiands Of
Oakland, secretary.
The company started business By giving
- T<.v h.
rights in Alaska Then u claims 20 have
sold 5000 shares at 30 cents shars. or .
net total Of 10000. the stock being de-
eissed worcestershire.
With this capital the development Of On
alleged coal deposit m the viids Of the
Sfcseu arctic Was inauguratsd. The most
gssdy Of prospectuses we're Issued, psint-
Ing IN glowing coloss the vastness Of the
deposits. the msgnificence Of tho scenery
and the certainty OF the great profits that
wers SIRE to dow from the business. The
photographs showed perpsndicuiar bank
Of coal that might be estimated at any
width from no 20 400 feet The strata
were shown running in all possible direc.
tions. and were presented in the most 1T
sractivs way. II VS. demonstrated that
ths cosi could practically bs quarried and
could b. landed in San Francisco 20
chssply that tie investment would bring
enormous profits. This prospectus was
masterpiece In promoting literature and
attracted vide sttsntion. Its language
vas cast in pitch that brsathsd Of semi
tropical delights. and seduced possessors
Of coin to exchange II for the stock that
wAs to prove horn Of plenty TO oil who
might b 20 fortunate to get in on the
While this missionary work was being
carried on In California and throughout
the Union, some work WAS being done ON
the So-called mine. Out OF the first sale
Of stock the company chartered the little
steamer, The Jennie, and sent her 70
Alaska with few miners. Vice President
Bradley went on the same vessel - super
intsndsns Of the mine. Bradley vas re-
ported 70 have been the discovercr Of tho
mine. He had lived In Alaska some
yesrs and had been in the coal mining
business In Australia. Tho results Of the
6rst seasons work were not wholly salts
factory. but used up $4,000 Of tho COM
pany's funds.
The business Of selling and trying to sell
stock was vigorously continued Ia this
city, while the miners were biaating frozen
earth snd mot aer rock into the northern
seas. IL 10 claimed that $50 shares Of the
stock were sold about this time. The price
OF the stock vas never regularly fixed. IL
6uctuased many degrees from time to
time. running from nothing oil the way to
IS ahars. which appears 10 have been the
highcst price that WAS ever paid in this
country. % far ~ any outsider has any
knowledge.
About this time the honesty OF the
scheme Was vigorously assaiied and ito
methods were bitterly criticised. Men
Who had been In Alaska laughed at the
prospectus and called IL q fraud. Ii was
charged that the whole fabric WAS built
on fraud. that the company possessed no
title to the lands on which il operated.
that 10 could not obtain title, that IL had
Nc: built . wharf half q mile out into the
ocean. that Il did not own coal quarry,
and, In fact, the alleged coal WAS value.
less.
So eminent an authority A, John /
Howard, then and now manager Of the
Oregon Improvement Company. was
quoted ~ saying that there was no such
deposit OF coal In Alaska. and he had ex-
rerienced coal miners in the territory for
gears looking FOR coal deposits.
tockholdcrs became ciamorous and the
standing Of the concern was closely in-
Quired into. Once when questioned very
closely the president said. with that air OF
unconcrrn for which he Is noted. that
everything was going swimminsly and
that Senator Fair had just become inter
ssted. having taken large block Of the
stock. This the senator vigorously de-
MED IN language not to be mistaken. He
Oaid he Was not looking for even a ralti
miae in that region Of perpetual snow and
Ice. These things caused the managers 10
put forth sreciai efforts Ia contsnus the
work. aud they determined tn bring back
some tangible evidences Of the existencs
Of coal In their mine. In the snrins o,
~! they chartered tho bark Aiexanae.
Mcneil and sent her to Alaska She came
back With cargo of l.ss0 tons Of coal
which Was distributed among the stock
holders. sane OF whom thought il = fal,
domestic coal. " bite others deei ar~t il VI A,
worthless. Some malicious persons ~en-
80 Tar a. Co say that the coal a. secured
IN the usual comm.rcial way and has
never seea Alaska. bat this as never es
tAhiishet.
One thing 10 certain. however. Sine,
thai time NO coal has been brought from
Alaska Tor the com fssny. no miners h.y,
been maintained there. no wharvss hsy,
been hatt. no coat bunkers have bee,
erected and the stockholders hav, a.
siToyed the aiiuflns rrespestases Eve,
the manages have NOT lately pgose,Ss.t /,
he doing mueh. bat declared that they h..
ssrssv Indians NJ wcrk getting out tin be,
Indeed. save the 1eggs.et stnek heAs.er.
every one hsd forgotten about she Aga.S
Coat Company take until anous foa
mcnths A<A Then certain incuirse
came from France relative 10 the ssand
ira and prospects Of tass corporatiou
Ihesc inquiries came from rArssla
efaksrs 30 their correspondents here. I
vas then made apparent that while ell IN
world had slumeesed - 90 this insiisu
ticn. the officers were active enough. Hav
tnr ~orksd cat this iseid. they transisrsp,