Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-03-17
NINE UNDERCHARGES
Big Financiers Indicted for
Frauds in Alaska.
USE OF DUMMIES ALLEGED
Accused of Conspiracy to Obtain Pos
session Of Valuable Coal Lands.
BROKERS AND BANKERS IN LIST
Total of $4,000, 900 Involved-Pen-
atty Prescribed Is Fine Of
$4,000 or imprisonment
USE OF DUMMIES ALLEGED
BROKERS AND BANKERS IN LIST

CHICAGO. March 17-Nine men. includ-
ing former railroad president. bankers,
brokers and financiers were indicted by
federal grand jury yesterday in the
Matanuska river. Alaska. coal land cases.
The men are charged with having con-
spired to defraud the United States gov
eminent of 10000 acres of coal lands,
valued at $1O.OOO.O0O Those indicted are:
A. c. Frost, formerly president of the
Alaska Northern railroad. formerly pres
ident and promoter of the Chicago and
Milwaukee Electric road and president of
A. c. Frost & Co.
George NJ. Seward. Chicago. receiver
for A. c. Frost & Co
Pierre G.. Beach, Chicago, formerly Sec
rotary of the Alaska Northern railroad,
and secretary and treasurer of a. G.
Frost & Co.
Frank Watson. Spokane, Wash.
George A Ball. Muncie. Ind, said to
he financial hacker of Frost.
Duncan NJ. Stewart. Seward, Alaska.
formerly manager of the Southern Bank
of Toronto, Canada
Harry c. Osborne Gwyn l.. Francis
and Francis ii. Stewart, bankers and
brokers. of Toronto
Indictment Contains Two Counts.
There are two counts in the indictment.
The penalty provided, is fine of $4,000
or Imprisonment for two years on all
counts.
The land which the nine men arc
charged with having conspired to gain is
situated on the south side Of the Ma
tanuska river, extending from Chicka-
loon to Kings river. and on the north side
~ @AIy
The tracts are known as the Watson
group of coal lands and the Matanuska
Coal Company group
The alleged conspiracy was begun at
Chicago April l. 1905, according to the
indictment, and Frost, Ball, Osborne and
Gwyn l.. Francis were to have been the
chief benefciaries. The acquisition of the
land, the Indictment reads, was to he
effected by unlawful. fraudulent, false
and collusive locations. preferential rights
to purchase and final entries and loca-
tons under the coal land laws"
Ball IS declared to have acted as field
agent for Frost. and is named in the in
dictment as having induced several men
to file claims in the Cook inlet district
March 30, 1910. The Indictment contains a
copy of a letter written to P. NJ. Mullen
at Juneau. Alaska. setting forth that
Frost had mailed applications for patents
to thirty men, whom Ball, 1T Is alleged,
induced to file them.
Other letters contain list of men and
claims which Mullen was asked to inves-
tigate for Frost. Another letter acknowl-
edges the receipts of applications of sew
eral alleged dummy claimants.
Alleged False AFFIDAVIT.
Watson is charged with having sworn
corruptly to an agents affidavit of
posting notices and plans of claims.
Seward is charged with having corrupt
~ subscribed to deed of conveyance
whereby George W. Miller purported to
convey to p. c. Ellsworth the Santa Rita
coal claim, No. 294.
The second indictment sets out that A.
c. Frost May IL. 1908, corruptly address
ed letter to P. NJ. Mullen as follows:
Referring to my letter. Of the 9TH, it
has just occurred to me that the locaters
of coal claims in the Matanuska valley
could have the funds wired to you direct
to the First National Bank of Juneau, or
B. NJ. Behrend's bank. and Will thank
you to advise me which would be the
most satisfactory to you.
Judge Lands directed that the defend
ants furnish bonds of 5000 each. All ex-
cspt Frost. who is in Europe, are ex-
pected TO do so tomorrow.