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From: "Kent Lind" <klind@al*.ne*>
To: <techdiver@aquanaut.com>
Subject: Salvage of a Klondike Gold Rush era steamship--Juneau Alaska
Date: Sun, 13 Sep 1998 00:07:23 -0800
Hello wreck divers:

The following article on the steamship Islander was in the local Juneau
newspaper a few nights ago.  She was a famous Klondike gold rush era
steamship that sank near Juneau in 1901.  I've done some personal research
on the Islander.  According to the historical records, she originally sank
in 240' of water and rumors of large amounts of gold on board let to various
dive and salvage attempts from 1901 through 1934.  In 1934 the Curtis-Wiley
salvage group floated 2 barges over the wreck site and hauled her up with
cables and she was eventually beached in Greens Cove where she was ripped
apart with shovels and the debris was sluiced.  The vessel's safe was found
with minor amounts of Canadian currency and small amounts of gold inside.
The entire salvage effort cost over $200,000 in 1934 dollars.  In 1954 a
Seattle firm bought the salvage rights, dismantled the remains and shipped
it to Seattle but there are no reports of gold from this last operation.

Not much remains at the site.  One of the 1934 salvage vessels, the Forest
Green, was wrecked in the attempt and her remains are scattered about and
frequently mistaken for the Islander.  It was rumored that the bow of the
Islander broke off in the 1934 salvage effort but no local divers have been
able to find it but I don't know anyone who has gone deep at that site.  The
wreck site was about 240' of water and the fjord slopes down to over 600 ft.
Perhaps the bow is what Ocean Mar is after.  It will be interesting to see
if these folks can actually find anything or if they just blow a lot of
money.  There's certainly no intact wreck to be found at that site but there
might be some rubble and remains.

Kent Lind
Juneau, Alaska


---------------------------------------------------------------------
"Court gives go-ahead for company to salvage sunken ship near Juneau"

By MARK SABBATINI
THE JUNEAU EMPIRE
Wednesday, September 9, 1998
---------------------------------------------------------------------
A victor has been named in the legal battle to salvage a ship that sank
nearly 100 years ago near Juneau. Perhaps more important, a court has
declared it likely that a considerable amount of gold is aboard.

Ocean Mar Inc., representing insurers who apparently paid a Canadian bank
for its gold loss, was awarded the right to salvage the S.S. Islander in a
ruling issued by H. Russel Holland, a U.S. District Court Judge in
Anchorage. The 240-foot-long ship sank Aug. 15, 1901, while returning from
Skagway with miners from the Klondike Gold Rush.

``Based upon the evidence which has been produced,'' Holland wrote in his
Aug. 28 ruling, ``the court finds that the Canadian Bank of Commerce of
Dawson, Yukon Territory, more probably than not made a large shipment of
gold in August of 1901 which was in the custody of the Northwest Mounted
Police as registered mail matter from their departure in Dawson, Yukon
Territory, until the sinking of the S.S. Islander.''

Salvaging work by Ocean Mar also revealed a single, partially buried gold
bar near the wreckage, according to the ruling. Some longtime regional
residents have disputed the notion that any gold was on the ship.

John Treptow, an Anchorage attorney representing Ocean Mar, did not return
phone calls made this week to his office.

The other party is Yukon Recovery LLC, a four-person salvaging group based
in Puyallup, Wash., which claims they have rights to the ship under maritime
salvage law. Rick Hansen, a member of the group, said it will appeal the
ruling and hope for a judgment by next summer, the earliest time when
salvaging will be possible.

Rumors after the sinking, which killed 39 people, were that more than 30,000
pounds of gold were aboard. None has been found during previous salvaging
attempts, but Holland said it appears the gold was stowed in an area not yet
salvaged.

The ship sank about 30 miles south of Juneau after hitting a rock or an
iceberg.

Holland ruled that the companies represented by Ocean Mar likely paid the
insurance claim for the loss, despite ``a dearth of business records''
surrounding the sinking. The judge also ruled that Theodore Jaynes of Ocean
Mar and Robert Mester of Yukon Recovery both learned of the sinking in the
mid 1980s, but Jaynes began formal research of the area in 1993 while Yukon
Recovery started in 1995.

Because it is possible others claiming a right to the gold may come forward,
Ocean Mar must keep detailed records of all property salvaged and keep any
gold from the Canadian bank segregated, Holland ruled. Both companies have
agreed to turn over any artifacts to the state of Alaska.

--
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