The Alaska daily empire., 1915-07-01
SPIEL RIVER
 l FILES ANSWER

Am answer has been ilied 'ao thed complaint Of the Alaska-JWoan Com pnny against w. P Lass and the speel River project which sets forth tho attitude of the defense and es- iablishes basis for tho request that lhe plaintiff ohave nothing by che action begun"
 The answer alleges that during ihel summer and fall oi 1912, Robert A Kinzie. E F. Nennedy w P Lass and w. p. Bradley entered Into an agreement to search for and u possi. ble acqure water powers In Aiasloa Tor electro-chemlcal purposes and toI share equally In ths cost and ihe use of such power; that pursuant Go such agreement, they did find the powers at SDeel River and posted notices claiming such powers and afterwards applied Co the Department of Agri. culture for a permit as Che powers were on the Forest Reserve.
 At the same time it Is claimed. they also located number of min Ing claims and millsites Subsequent ly Mr Bradley turned over his inter est in tl.a project to the San Francis co Exploration Company and In Jan uory. 1913, Mir Kennedy, having ta- ken tite to himself in the mining claims. mmsltes and water powers, executed, at the request Of Bradley declaration Of trust declaring that be held all these properties in trust
 one-fowth for himself one-fourth for Kinzle one-fourth for Lass. and one.fourth for the San Francisco Ex- ploration Company. Subsequently, and in August. 1914, the permit was issued to Kennedy as trustee by the Secretary of Agriculture, The de- fendants then allege further that the San Francisco Exploration Company, requested Kennedy to make a deed Co the Alaska-Juneau for the formers one-fourth interest in the water pow CTS and other properties. which Ken nedy did. and that afterwards the Alaska-Juneau refused to contribute l its share to the development neces- sary. lt is charged thas to comply with the rules of the Department in order to procure a permit and main tain rights under it surveys had to be made of the various dam-sites, reservoir sites conduits, power sta- ton sites and other groand needed on the reservation. and that certain amount of development work had to be done from time to time and an an. naul rental paid the government. This the plaintiff refused to do according to the allegations in the answer, and Chat after the first of April 1914. the plaintiff refused to contribute in any way to the expenses necessary for securing permit or for maintain ing the rights of permits hereunder and that the Alaska,Juneau aban- doned the original intent of using the power for electrc-chemical purposes and refused to pay any part of the rental to the government that there after eor peace sake, so it is alleged, Che defendants. Kennedy and Lass. who by that time mad taken over Kim zie's interest and held threeiourths interest in ali che properties. made a proposition to the AlaskaJuneau to either develop the project jointly with the Alaska-Juneau according Co the original plan or develop 1t joint | iy and let the Alaska.Juneau take it's one-fourth of the power developed and do what they pleased with it. or the defendants would develop the power at their own expense entirely and give the Alaska-Juneau S5 per cent. of its one-fourth interest," or else let the Alaska-Juneau develop the entire power at its own expense and give the latter 60 per cent. of the defendants three-fourth interest; and in case the Alaska-Juneau would ac- cept none of these propositions, then. 1t 1t would make tn e defendants, Lass and Kennedy a buy or sell' offer. the defendants bound them selves to accept any such buy or selw proposition which the Alaska Juneau might make; but an these propositions were rejected.
 The defendants further charge that tue Alaska-Juneau refused to contribute in any respect to the de- velopment or maintenance of the properties in question for the purpose and with the intent-of compelling the defendants to abandon the proper ties or to forfeit them, or to sell them to the plaintiff or its officers at a sacrifice and that the refusal of the Alaska-Juneau to cooperate in any way or to buy or sell was done for the same unlawful purpose; that after the first of April, 1914 when the Alaska-Juneau refused to contri- bute to the maintenance of these properties, Kennedy and Lass had OK pended S2l,O00OO and on account of Che contrary action of tue plaintiff, they were unable to raise the neces- sary money for the protection of their owa rights for the development of the powers; and they failed to pay the rental due the government un- der the permit on the first of Jan uary 1915; chat they. therefore. re turned the permit to the Department of Agriculture whero the permit was cancelled last April A new per init. however. for the same powers wlas issued by the secreatry of Az ricuiture to the speel River Project Incorporated, and it is alleged that the plaintiff has forfeited any right or interest which it ever had in eith- CT the mining claims or the powers;