The enterprise. [volume] (Harlem, Mont.) 1899-1926, 1911-03-23
Nine INDICTED
FORC0AL FRAUDS
FORMER r. r. HEAD, BROKERS
AND FlNANCIERs HIT BY
FEDERAL GRAND JURY,
IN JUDGE K. M. LANDtS' COURT
Plotted to Defraud United States Of
10000 Acres in AIaska-Two
Groups Of Claims, the Wat
sons and Matanuska.

OulcdSO, Mafcn l7.-Nlne men, In
Guiding former railroad president.
banker, broker and financiers, were in
dlcted by the federal grand Jury in
the Matanuska river coal land cases.
The men indicted are charged with
having conspired to defraud the Unit
ed States government out of 10000
acres Of Alaska coal lands valued at
$10,000,000.
| Those indicted are: A. G. Frost,
former president of the Alaska North
ern railroad, former president and pro-
moter of the Chicago Milwaukee elec-
trio road and president of A. C. Frost
& Co.
George M. Seward, Chicago, receiver
for A. G. Frost & Co.
Pierre G.. Beach, Chicago, former
secretary of the Alaska Northern rail-
road and secretary and treasurer of
the Frost company.
Frank Watson, Spokane, Wash.
George A. Ball, Muncie, Ind, said
to be financial hacker of Frost.
Duncan NJ Stewart, Seward, Alas
ka, formerly manager of the Southern
Dank OF toronto, Can.
Harry G. Osborne, Toronto.
Gwyn L. Francis, Toronto.
Francis H. Stewart, Toronto.
The last three are bankers and brok.
Srs.
Two Counts in Indictment.
There are two counts in the indict.
ment, which is drawn under what is
known as the conspiracy statute. The
penalty provided is fine of $40, 900
or Imprisonment for two years on all
counts.
The land, which the nine are charg-
ed with having conspired to gain, is
located on the Matanuska river, ex-
tending east from the Chickaloon riv-
er to Kings river and land on the
north side of the Matanuska river and
in the vicinity of Moose creek. There
are two separate tracts, known as the
Watson group of coal claims, and the
Matanuska Coal company group.
The conspiracy began at Chicago,
April 1, 1908, according to the indict-
ment, and Frost, Bail, Osborne and
Gwyn l.. Francis were to have been
the chief beneficiaries. The acquisi-
ton of the land, the indictment reads,
was to be effected by unlawful,
fraudulent, false and collusive Local
lions, preferential rights to purchase
and final entries and locations, under
the coal land laws"
Continuing, the indictment says:
"That by cunning persuasion and
promises of pecuniary reward and
other corrupt means, divers persons,
qualified by law to make location up
on and entry and purchase coal lands,
should be procured to make unlawful
location ostensibly for exclusive use
of claimants, but in truth and fact for
the benefit Of the conspirators."
Ball is declared to have acted as
field agent for Frost and is named in
the indictment as having induced sew
eral men to file claims in the Cook In
let district on March 80, 1910.
The indictment of Seward came as
a surprise, as he had been summoned
as a witness to testify before the
grand jury. Judge Lands directed
that the defendants furnish bonds of
$4,000 each and all except Frost, who
is in Europe, are expected to provide
bonds.
B. D. Townsend, assistant attorney
general, with Assistant District Attor-
ney Seward S. Shirer and most of the
aids, left for Seattle. On March 49,
Mr.. Townsend will prosecute the cases
known as the English group" against
Charles F.. Mundy, Algernon H. Strac-
ey. Earl e. Siegley and Archie w.
Sniels.