The Seward gateway., 1915-10-22

afternoon, Mr. West, counsel for plaintiff, placed Mir. Haight on the stand as witness for the plaintiff, From the testimony it appears that Hr. Haight was the secretary for the railroad company and also for the Panama Construction Company. Nr. West also brought out that Mir. Haight acted as attorney for the said Alaska Northern Railroad, the plain tiff in this action.
 The proceedings this morning open ed with q request by attorney for plaintiff that he be allowed to place Col. A. W. Swanitz on the stand, out of order, as the colonel was very i'll.
 Colonel Swanitz was interrogated as to the beginning of operations in Seward and vicinity. He stated that he was the organizer of the Seward Construction Company which was organized for the purpose of building the railroad. This company failed to secure the necessary financial back ing. Colonel Swanitz then organized the Panama Construction Company, which company secured the contract from the Alaska Central Railroad to build the road. He then went into detail of the organization of construc ton companies generally, and gave their purposes and benefits. These companies are generally closely al lied with the railroad companies, and amongst other purposes served, IS that of keeping the railroad out of through accidents, etc. Colonel Swanitz further stated that the Tanana Construction Company was a part of the Alaska Central Company, that they both operated together and were very colsely allied.
 Colonel Swanitz first came to Sew ard on the 28th day of August, 1903, and remained for about two weeks, during which time he laid out the plans of the wharf and other build ings. He returned to Seward in April 1904, and remained until February, 1905, at which time he severed all connection with the Panama Construc- ton Company. He testified that dur ing this time he did not know of the existence of the Panama Railway & Construction Company. Mir. West produced the stock book of this com pany which showed that stock was issued during the time Colonel Swanitz was in charge of the opera tions. He first heard of the existence of this company in May, 1905.
 Colonel Swanitz was then interrog- ated as to his knowledge of the town site, and replied that a survey was made previous to his arrival in Sew ard, that lots were seld on the even ing of his arrival here, that John E.. Ballaine fixed the price of the lots, and took complete charge of the land end of the operations. John E. Ba' laine told Colonel Swanitz that he (Ballaine) owned the townsite.
 
 Mir. West next questioned Colonel Swanitz regarding the promotion Of the railroad and the sale of the se- curities. He testified that prospect uses were sent through the mail to- gether with circulars to prospective purchasers. This phase of the matter was gone into quite extensively, and several circulars introduced in evi- dence by Mir. West.
 The colonel was then questioned as to his knowledge of certain voucher for the sum of $4,0O0 paid by the Tanana Construction Company to k. R. Keller as trustee, to pay the note for the same amount to Mary Lowell for the relinquishment of the Lowell claim to the townsite. He explained that he approved of this payment at the request of John E. Ballaine, and
 also to protect the Shedds, who held
 deed to the townsite along with
 other securities, for the amount loan