The Alaska citizen., 1911-02-22

would be valued in the event Of a sale. bu is merely the valuation that We as bankers would give the prop. erty were We considering a loan on 1t.
 According 10 the statement fur. nished us by Mir. Armstrong. the gross resources of the company amount 10 s526.OOO. which We believe 70 Ic conservative valuation as we ar informed that a reasonable amount is charged off each year for depr . citation. We have therefore te1e. graphed to you as follows:
 Tn reply to your telegram of Saturday, property is worth ill eur opinion s375,000, for firm basis of credit Believe it can be sold fer more than $i25.o00. Opinion is has ed upon statement March 1, and in dependent investigation.
 We do not know fir what purpose cur opinion on this rropertf iS wanted, but we have been as faj, as possible in making the above estimate, and trust that our opinion will be of some service.
 Yours very truly.
 NJ. w PETERSON.
 Cashier
 DeXtcr-H c."
 It has been reported that tE" Gold Bar stock is in the hands If the Dexter-Horton National bank. and is pledged 70 them. The truth of this is, that Mir. Armstrong plac- cd the stock there for safe kcc0ing at my request and he received d receipt from the bank to that effect which unfortunately, l left in a safe deposit box in Los Angeles THl "Ording, to the best of mE rcrellac- ton, is as follows:
 Received from 4. T. Arms;ou" 9o shares of Gold Bar stock D be hcl1 for sefa keepins, subioc' 10 he order of E. T. Barnette
 This was given hy the De%er- Horton National bank, but tie eX- act signature l am unable to recall.
 Original Purchase of Gold Bar.
 l personally did not follow thc details of the Gold Bar deal. bur to the best of my rcCollcctien. we. Wood, Hill and myself paid $241- GOO for a four-ffths interest in Gold Bar. During the time VIZ owned this it was making profits and in place of Us receiving any dividends we turned il all into improvements We also borrowed money fr,m Out side banks. all of which was put into improvements and buying more timber.
 In arriving at the value of the same. We figured what our stumpage was worth, and then all of our ma chinery and improvements. and we considered it worth $3i1.Goo at the time of reorganization of the bank. After this committee had inyes- tigated it and received tho atoye- mentioned telegram and letter they accepted it at those figures.
 In this conn6 ction, l wish to say that during the time the Causten case was pending they threa' ened to attach Gold Bar. If this matter was allowed 10 go on it would no doubt have caused a run and the bank would have been compelled to close it's doors. In order to pro, feet the bank l was compelCi to pay Causten s125,000. The court had held that Causten had no in terest whatever in ground staked by me by power of attorney. By actual ac- counting of goods, property. bank stock, etc. that. according to the court Causten had an interest in his share could not have been ever s40,00O. By taking advantage of me being interested in the bank and threatening to attach Gold Bar, which, if allowed to go on, would have caused the bank to suspend. I nnn,nf1aI tn SS- wi out of my own pocket simply to protect the bank.
 As Mir Hill handled most of the detail work of the reorganization of the Fairbanks Banking company and the taking over of the fourtifths interest in the Gold Bar Lumber company. was very anxious that he should come in here and testify. learned from his wife that he was ill and it was doubtful if he would come Then I sent the following telegram to him.
 Seattle. Feb. 1, 1911 James w. Hill,
 Northern Commercial company.
 San Francisco, Cal.
 Best information at hand they claim We cleaned up S100000 on Gold Bar For your own good think you should go in. If you don't they will say there is something wrong and that you are afraid to go. or that l am keeping you away.
 F. T. JEANETTE"
 I also sent the following telegram from Cordova, which MT. Dusenbury tells me that he did not receive. "B R. Dusenbury,
 Care of A. T. Armstrong, Gold Bar Lumber company,
 Henry Bldg. Seattle. Wash.
 If court won't pay Hill, your eX- penses l will.
 E. T. JEANETTE"
 Hill Note.
 MT. Hill was intending leaving the country in the fall of 1909 and wanted to sell his stock, amounting to $13,OOO. refused to buy same and the directors did also. I then loaned him S1O,00O for one year at 10 per cent per annum, taking his note and bank stock as security. Before I left for the Outside, and after the note was past due, but had been reduced to about s7,000 I asked MT. Jackson if the bank would not take this over if I en- dorsed it. He consulted MT. Clark
 IL f1I,