The Birmingham age-herald., 1913-04-14
Five Accused With COnspir-
acy to Defraud Govern
ment of Coal Lands
VERDICT FOLLOWS II
HOURS DELIBERATION
Defendants All Interested in Develop
ment of Alaskan Central Rail-
road, Which Was Intended
To Open Up Coal Lands

Chicago, April 13.-Albert c. Frost, for
ner president and promoter of the Alas
ka Central railroad and his four co-de-
PENDANTS, all interested in the develop
ment of the road, were found not guilty
In the federal court here today of con-
spiracy to obtain control illegally of mill
lions of dollars worth of coal lands in the
Matanuska valley. Alaska.
Disputes over the methods of coal claim
loeators caused the coal lands to be with
drawn from entry during President Roose-
velt's last administration. Frost and his
associates were indicted March 16. 1911. in
the United States district court here,
charged with conspiracy to obtain control
of 81 coal locations by means of dummy
entrymen.' The government asserted
that the railroad promoters caused ste
nographers and other employees to apply
for coal lands with the purpose of turn
ing the entire group over to Frost.
Coal Lands Withdrawn
The verdict, while a vindication of the
business methods of the defendants. does
not open the way for the completion of
the railroad as the coal lands still are
withdrawn from entry and will remain so
until released by the department of the
interior.
Mr.. Fhost said after the acquttal that
construction of the road depended on the
opening OF the coal lands and that 1t was
al a standsti1l.
At no time was the jury more than
evenly divided against the defendants.
The first ballot stood six TO six. The jury
delberated about three hours last night
after taking the case at O'Clock. The
verdict was given at this afternoon.
Judge Kenesaw M. Lands, on hearing
the verdict, demanded that copy of it
be ha,.aed him The covrt wes sileBs
while he examined the paper.
Landis Comments
Counsel for the defense are to be con-
graduated on having achieved a most
extraordinary victory he said after
studying the signatures of the jurymen.
Later when asked to amplify his state
ment Judge Landis replied: II refuse to
add anything to that. l will say nothing
more concerning this verdict"
Frost. in a statement, said he became
Interested in the financing of the road in
1901. 1t was to run from Seward on the
south coast of Alaska north to Fairbanks.
a distance of 4S3 miles,, "A1l that I did,.
said the statement, was for the deveI-
opment and welfare of the country. The
dltltuue Ol lllt SONcTfltutIl lOWdIu AfdShd
in the last eight years has throttled all
development and the population of that
great empire is less today than it was
eight years ago.
Railway Now Useless
The railway now is useless, according
to Mr.. Frost, and 1t wouId cost about
$10o. 900 year to operate it. The conten-
ton OF Frost throughout has been that
he was ambitious to be the pioneer to
open up interior Alaska to public settle
ment. The defense brought in the name
of the Morgan-Guggenheim Alaskan in
terests, declaring that that alleged finan-
cial combination was inimical to the sue
cess of the Alaska Central road and that
it was necessary for the Frost interests
to get the Matanuska coal lands into
friendly hands.
The men acquitted today were Albert
c. Frost of Chicago, former president of
the Alaska Central railway.
George M. Seward and Perry G. Beach,
both of Chicago. and respectively former
vice president and secretary OF the Alas
ka Central. George G. Ball of Muncie,
Ind, financial hacker of most of the
Frost coal locators, and Frank Watson
of Spokane, Wash, who located most of
the Matanuska claims under power OF at
torney for the various entrymen.