The Alaska citizen., 1911-05-22
.BALLA|NE DEALS 0UT HOT ROAST T0LABEREE.
Original Promoter of Alaska Central Scores President Laberee in Terms Which
 Call for Some Action.

first. and was continued as such. As I retained a large amount of stock. although a minority. l continued as director of the railroad company When few months later Frost un. dertook to break down the limit of $33.0O0 a mile to the bonded indebt. edness of the road. and to authorize an unlimited bond issue. Laberee and Turner vigorously opposed the un- dertaking for a while. but suddenly and myster!ously ceased their oppo. sition. They then entered into a secret contract with Frost. unknown to any of their associates or to any other stockholders by which they agreed to support Frost in the pro. posed increase. At every subsequent meeting of directors and stockhold- CTS they voted in support of all reso. lutions providing for the increase.
 When Frost originally proposed a new bond issue he did so on the ground that he wished merely to re. wise the trust deed to suit the re. quirements of prospective investors in London. l gave my consent on this understanding But when the revised trust deed was submitted to the board by him for ratification. l detected the deception and the true intent, and opposed it consistently from that time forward When the board finally ratified it with the aid Of Turner and Laberee and Frost s dummy directors. refused longer to serve as a director
 The resolutions effecting the in crease were brought to the meetings in typewriter form by Turner and were introduced in every case by | him. Turner at the time was acting as trustee for the distribution of cealed from them the fact of his i secret contract win Frost. and even denied the existence of the contract Under the terms of this secret contract. Frost paid Turner S25,0OC in cash and agreed to pay him $75, 900 more if Turner succeeded i'll lob bying a bill through congress pro viding for a government guarantee of the interest of the rail'nad' s bond issue
 Turner lobbied for such bill in the session following. but made no headway The $25,O0O was sub sequently charged by Frost tc the railway company.
 "Labaree received under the terms of the secret contract an increase of his proportion of stock
 This secret contract, resulting in bond issue so inflated that Frost could find no buyers for the bonds was followed swiftly by Frost's fail ure and the wrecking of the com pany
 "A few months after the signing of the secret contract, Laberee went tC Seward, there made the verbal an nouncement that President Frost had anppointed him general manager of the railway, and moved into the general managers office. He proceeded tc issue orders as general manager, and l began negotiations to award con struction contracts, in which, it de veloped, he was to have a percent age interest Fortunately for the company, l happened to be in Sew ard at the time and promptly exposed the imposture. In reply to cabled inquiries Frost denounced Laberee and ordered him elected from the building. Laberee went. under threat of one of the employees to give him d public horsewhipping. He hired an armed guard to protect him dur ing the rest of his stay in Seward locked himself in a stateroom of the first boat that arrived and sailed away. He resigned under compulsion as a director, on his return to Spo kane.-ValdeZ Daily Miner