The Nome nugget., 1922-05-13
THE TRUE SITUATION
 RELATING TO PURCHASE OF SEWARD PENINSULA K. K.

WV "'" ""sV s~ DIV tuS NSsA0 Ruo- lie statement of conditions relative to the proposed purchase of the Seward Peninsula Railroad.
 Various surmises have been rife fin the community why the authoriz. ed purchase was not accomplished by our Territorial ofiicials. Some who knew better even went 50 far as to condemn officials for malfeas- ance in office. The defective title. while it exists. Is not the crux that prevents present acquisition. At the time the road was sold to Linde- berg. Nome was given to under stand that the purchase was made thru q purely altruistic spirit and that as soon as the Territory was able to acquire the road 1t would be sold at the original purchase price which was about $10.0O0.0O. The Territory however. appraised the road Ut higher price and siEnifed its willingness to pay a bonus of 100 per cent on the original pur- chase price.
 It Is the opinion of Nomeites who were in Juneau during the negotia. tions and later in the States. while further negotiations were In pro- sress, that if the Pioneer Mining Company. or its representatives. do not net soon the road will not be purchased this year and perhaps not at all.
 Following are excerpts from the letter signed by Territorial Attorney General John Rustgard:
 It is evident that considerable transformation has been assiduous- ly circulated concerning the pur' chase of the Seward Peninsula Rail- road by the Alaska Road Commis- sion pursuant to Chapter Ss Of the Laws of 1921. The facts are these,
 The law in question provides that the road may be purchased by "The Federal Board of Road Commission CTS of Alaska" meaning evidently the Alaska Road Commission, with the consent and approval of the Ter ritorial Board Of Road Commission CTS,
 Col Steese as chairman of the ,,asrs Road Commission reported tEat the road in question was worth sls.ooo. and no more. ana recommended that no more be paid. Major Gptwals, one of the officers of the Alaska Road Commission. subsequently and after MT. Frawley arrived in Juneau, addressed a let ter to the Territoria, Board of Road stating that he esn- mated the road worth sso,ooo, but no more
 The Territorial Board Of Road held meeting. one of the members voted to pay sls,eeo s,r the road provided the funds could be raised In other words 4 majority of the Territorial Board nav sse.eee, or rather to furnish to the Alaska Road Commission the sum of sso.oee for the purchase Of the road.
 Subsequently, a meeting wsS held sv the directors of the Pioneer Com pany in san Francisco at which ,nee,inr resolution was passed tc se,, the road for sse,aee, but for acthing less.
 It is obvious that the question o' title has had nothing to do with the failure of the Alaska Rosd Com mission to purchase the raiiroao- My connection with the transaction has been as follows, not otherwise;
 When was in Washington re eeiyea a wire to look up the records of the railroad in the Department Of the Interior. which I did after wards received a telegram 10 stoe 16 SaE T IaHtSSNR-
 the title documents in the posses sion of the Pioneer Company aac NIT. Frawley at that place which aid. Neither in Washington nor m San Francisco could I get any satls- factory evidence of ownership of the railroad, but was Informed hy NIT Frawley that all details in regard ,e title would be furnished me by MT. W. H. Gorhar Of Seattle who was attorney for Boston company in foreclosiag a mortgage on the road and sn taking judgment aFalns7 the road in Nome
 At the time I passed through Seal tie I caled on Mir. Gorham who