The Wrangell sentinel., 1949-08-19
PRESSURE GROUP
DEFEATED BIG LOAN
R0DEN DECLARES


Roden this week issued the follow
ing statement announcing the fail
ure of an effort to negotiate a
million dollar loan for the Terri
tory to meet general fund obliga-
tions:
Representatives of the Seattle
financial syndicate with whom I
negotiated for the sale of $1,000
600 worth of warrants arrived in
Juneau recently to confer with
Territorial officials, and for the
past few days these syndicate re-
representatives., consisting of Mr. o..
B. Thorgrimson, of the law firm
of Preston, Thorgrimson & Horo-
witt; Mr.. Geo. Marshall, of Foster
& Marshall, bond brokers, and Mr..
K. Winslow, Jr., manager of the
Seattle Trust & Savings Bank,
have been discussing with the
Governor, the Treasurer. the At
torney General and the Auditor
the plan to raise cash for pay
ment of the Territorial warrants.
"As reported by the press re-
Gently l had previously gone to
Seattle and while there had made
an agreement with the syndicate
under which it would purchase
Territorial warrants in an amount
of approximately one million dol
lars, inasmuch as 1t was anticipat-
ed that sufficient revenues would
come into the Territorial Treasury
within the next six months to
make it possible to pick up and re-
deem these warrants by February
10, 1850.
1.-The syndicate gentlemen have
now advised Territorial officials
that recent developments have
changed the situation. AS soon as
the closing of the aforementioned
agreement was announced, strong
protests against any plan to bene-
fit the Territory were lodged with
the members of the syndicate and
the financial institutions they re-
present by influential business
people connected with industries
operating in Alaska Threats have
been made to bring suits against
the syndicate in Seattle to prevent
the Territory from repaying on
February 10th next. or at any
other time, the warrants the syn
dictate had planned to purchase. In
addition, the Industries have
plainly advised the syndicate that
suits are in preparation attacking
Territorial tax statutes in addi-
ton to those now pending in the
courts
AFTER examining Territorial
books. the syndicate members a
I greed that the credit of the Terri
tory is good, and that it is, in fact.
| in much sounder financial condi-
tion than many states and counties
including the state of Washington
and its King County. They felt,
however, that because of the pend
ling suits against various Territor-
Iial revenue measures and threats
of more vexatious litigation, and
especially of the threat to attack
the financing plan agreed upon by
the syndicate and the Territorial
Treasurer, to be brought by the
Industries here and in Seattle, to-
gether with the ham-stringing linn
itations placed on the Territory by
| Congress in the Organic Act, they
could not see their way clear to go
| ahead with the plan as originally
| agreed upon with me.
This time, legalistic skulldug-
gerry is the means used to embarass
the functions of the Territorial
government The entrenched inter
ests, however, offer to help solve
the merely temporary financial
difficulties into which they have
deliberately plunged the Territory
by threats and Misrepresentation
| to those who were ready to ad-
vance the funds needed to over
come the situation. They have
commenced a number of law suits,
| and threaten to bring more, at
i lacking recently enacted revenue
measures. BY pursuing this method
they hope to bring the Territorial
government to its knees and to do
their bidding. They want the leg
islature convened in special ses
sion, have the recently enacted tax
measures repealed or greatly modi
fled, and in their stead provide a
sales tax If you will do this,
they say, we will advance tht
million dollars presently needet
and, in addition thereto, will pay
the expense of the special session.
In other words. they propose to
dictate and formulate the Terri.
tory's policies and tell us what we
must do. 1 think the people are
amply able to decide for themselves
what course to take under the ex-
listing circumstances.