Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-04-14
Jury in United States District
Court at Chicago Finds Alas
kan Promoters Not Guilty Of.
Conspiracy,
VERDICT IS RETURNED
AFTER SEVENTEEN HOURS
Judge Lands in Commenting
on Outcome of Case Declares
Counsel for Defense Achiey-
ed Extraordinary Victory

tsy Morning journal special Leased wire)
Chicago. April i3.--Albert c. Frost
former president and promoter of the
Alaska Central railroad and his -four
co-defendants George NJ. Seward
Pierre &. Beach, Frank Watson and
George G.. Ban, all interested in the
development OF the road, were found
not guilty in the federal court here
today of conspiracy to obtain Illegally
millions of dollars worth of coal lands
in the Matanuska valley Of Alaska.
Disputes over the methods of coal
claim locators caused the coal lands
to be withdrawn from entry in Presi-
dent Roosevelts last administrations.
Frost and his associates were indicted
March 49, 1911, in the United states
district court here. charged with cor
spiracy to obtain control of siXty-four
coal locations by means of dummy
entrymcn. The government asserted
that the railroad promoters caused
stenographers and other employees to
apply for coal lands with the purpose
of turning the entire group over to
Frost
The verdict while a vindication Of
the business methods Of the defend
ants. does not open the way for the
completion Of the railroad as the coal
lands still are Withdrawn from entry
and viii remain so until Released by
the department of the interior,
The verdict was given at o'clock
this afternoon.
Judge Keneshaw NJ Lands on
hearing the verdict, demanded that a
copy Of it be handed him. The court
was silent while he examined the
paper.
Counsel for the defense are to be
congratulated on having achieved a
most extraordinary victory he said
after studying the signatures Of the
iurymen.
Later when asked to amplify his
statement. Judge Lands said j re-
fuse to add anything to that will
say nothing more concerning this
verdict
You never can tell what a jury will
do" was the comment of Special At
torney General b. d. Townsend, who
conducted the prosecution.
Eros, made the following state
ment;
"As to the completion of the Alas
ka Central railroad, unless the gov
ernment changes its policy and en-
courages settlement and developments
Of the country and permits the de-
velopment of the Matanuska coal
fields there can be no hope of fl
nancng the road to completion
II became interested in the finane-
ing Of the road in 1904. 1t was to run
from Seward on the south coast OF
Alaska. north to Fairbanks, distance
of 4S3 miles. The opening up Of the
coal fields in Matan0ska valley was
an important factor to the develop
ment Of the road and ! Induced
number of my friends as well as some
of my employees and others 70 take
claims did so under advice Of the
best legal counsel All that did was
for the development ana welfare ol
the country.
"The attitude of the government
toward Alaska I'm the last eight years
has throttled all development ana the
population of that great empire is less
today than it was eight years ago.
The railway now is useless, accord
rrt4.ta io uq peNe-
nue.. he said. and il would cost about
500, 900 year to operate it, Every
effort has been made, according 70
Frost to get the interior department
to reconsider the Withdrawal of the
lands
The contention Of Frost throughout
was that he was ambitious TO he the
pioneer to open up interior Alaska To
public settlement. The defense
brought in the names of the Morgan
Guggenheim Alaskan interests. de-
claring that the alleged financial come
bination was inimical to the success
Of the Alaska Central and that It was
necessary for the Frost interests te
get the Matanuska coal lands into
friendly nbndS.
Frost was induced to enter the IL
nancing of the road by Henry G. Os-
borne. a banker of Toronto. Canada.
Francis 4 stewart and Gwyn L.
Francis. also bankers of Toronto We're
Interested with Frost and were named
ia the nine indictments brought hy
Tie grand jury two years ago. The
Canadians. however. could not be
brought to this country for trial
Duncan NJ. stewart. Of seward,
Alaska former manager of the Sow
efeien Bank of Toronto was another
defendant. but was not tried, owing to
tfe statute of limitations operating IN
l9la case
George NJ, Seward and Pierre q.
Z zach, both Of Chicago, were former