Valdez daily prospector., 1912-12-14
FAlHDAnsls yDAnksoAsE ,as, STnL WEAHiNQ ALoNo
Continued from page D

'SOhtiuuou ATOui pdBo II chase, the Washington-Alaska bank had cash on hand to the amount of $578,OOO. There was .H ,O0O,000 due from bankers. They owed nothing to bankers.
 found d letter in the Fair banks Banking cnnpany's records from F.. T. Barneite dated Octu- Der 1, 1910, rendering his reSig- natiu as president and a director of the bank.
 Prosecution rests.
 Armstrong: In 1910 the value of the Gold Bar assets was $i25,- 000 tn Si35,0 ,000 net.
 Court cOnvencn at 9:3O. Case of the United States vS. Jackson continued until Tuesday at 10 d. m.
 Armstrong: The original cost of the Gold Bar was $500. .O0O. The tuwnSilr and store wrr.. pur- chased aficrward We carried these properties at those figures unti the new mill was built. In January, 1908, the property im- creased s97 ,000 in value on ac- count of increased value i'll thn IStumpagr. Dexter, Horton & Co.,, bankers, after investigation, gave this property d vallali ion of $i15, 900.
 Y. <. Mckenzie, secretary and manager Gold Bar Lumber cum- pany: was subpOenacd tu come here by the government. Have been with the company ten years. 1 figure the lumber market valtI" at from S2 to $3 d thousand. ar la total of $53i, ,OOO.
 J. l.. McGinn was attorney for Fairbanks Banking company. and testified that the Scandinavian- American hank lrlrgraphrd the StuckhnldrrS of the Fairbanks Banking company that banks stock in Gold Bar SlockwaS good for loan of S250, 0,000. Upon the informal ion received from Seattle the StncklloltlrrS voted tU take Uv- CT tn" stock al the figure it was put at. When the banking cor pnraLi'n was formed Barnettr did moi wish to fake an active part in the bank'S affairs. as h" had private enterprises in which h. wished io engage, but the stock holders insisted on him taking the lead. The directors were chosen in order that a prominent and ~lIbSianlla npr'raiOr on each rr"rk should lr q director tu bet ter serve the banks interests. The directors were nDl men whu could hr dominated by Isarnctir. In 1910 Mr.. Wood and mySrl ;purrhaSrh the Fairbanks Bank ing c"ml'any'$ stock in Il,. First National Bank nf Fairbanks for fSl@3 .nnn. which We hrli ui,lrr ail .uri ion.
 Mr.. MrGinn. R. \. Jark~nn an. standing in 1910 nf individuals owing [ he Fairbanks Banking company.
 ChaS. Adler and Jas. Lindrr. of N"li"\Ia. "N"rlIl",l d lI"n'l in ih" sum nr S2.n0n for the apprar- aurrr of GhaS. Pajomau. T Afternoon Session.
 Tn" grand jury reported no true bills.
 Mr. Hill: The siucklIrIl"r> committee rejected about SG7:OUU in loans and discounts held hy Inc Fairbanks Banking company when a partnership. The old partnership retained those. F. w. Hawkins: After the pIlr- chase of the WaShinglun-AI Alaska by the Fairbanks Banking run,- pany was gold dust teller. Lea was cashier of the WaShingtun- !, Alaska and subsequently, was rc- crivcr. As receiver inquired of , Dexter Horton X Ca. as lo IlIr valur "f IIr Gold Bar holdings. : Tn" bank estimated value banks ! interest at $500. .O0O.
 looked over lhc books of lIlr : Washington Alaska tO ascertain the earnings of the bank. Fink: want to show lhis be- cause the earnings of the bank justify the price paid by the Fair banks Banking company.
 Hawkins: In 1905 the bank earned S50,OOO. in 1906 $50, ,OOO. ! i'm IDO1 S5O OOO in IOuS SD- nnn