The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-11-15
Widest Dreams of Colonel Sell
Ter Eclipsed
By the Possibilities of Utah's
Asphaltum Beds.
WORTH S92O,OOO,OOO.
Two Rival Syndicates VIII Bat
tie for Possession.
Possible Profits Are Estimated
at $46O,OOO,OOO.


remunerative monopoly than any of the
gigantic trusts heretofore organized to
control a specific industry.
This new combination of capital will
seek to obtain possession of the gilsonite
or asphaltum beds of Utah. easily the
most valuable in the world.
There is in sight for this new monopoly
the acquisition of property worth hun
dreds of millions.
The representatives of wealthy New
York syndicate and the agents of the St.
Louis corporation now engaged in the
gilsonite trade are preparing to struggle
for this fabulous stake.
The cost of the land under the mineral
laws, or sold in the usual way by the
United States government, would be a tri-
f1e compared with the profits.
Congress is expected to stand between
this new trust and the people. but the
only alternative in sight seems to be gov
eminent ownership. and there is little
hope of salvation from that source.
On April next the Uncompahgre Indian
reservation in Utah will be opened to set
Element, all except the mineral lands,
which are reserved by the government.
These mineral lands embrace about 10000
acres. The only mineral known to exist
there is gilsOnite asphalt. The depos-
its of this character are reputed to be the
richest in the world.
When the vast wealth lying in this
small area, awaiting only the consent of
the government and the enterprise of man
TO bring it forth. is estimated, the discov-
cries of gold in the KIondike region seem
insignificant. George Romans Eldridge,
the United States geological expert, says
in his report that 100000 tons of as
phaItum can be mined in this territory.
As every city in the United States is now
laying asphalt pavements. the value of
this richest deposit in the world can be
understood.
The St. Louis corporation, which Is now
working a lode adjacent to the reserva-
tion, is selling it's product for $40 to $50 a
ton Estimating the value of the deposit
at $40 ton the asphaltum contained in
the lands to be retained by the govern
ment represents a latent wealth of $780,
O0O,O00
The problem to what disposition shall
be made of these lands is one of the most
troublesome with which congress will
have to deal at the approaching session.
The sentiment in both branches is widely
divided. 1t is admitted, however, on
every hand that these deposits should be
opened to development. How to do this
without creating a legalized monopoly. or
robbing the people outright, constitutes
the perpleXing question
It has never been the policy of the gov
eminent to exclude mineral lands from
settlement. Many settlers and represent
atives contend that to make an exception
in this case would be a serious mistake.
At the same time however. there is a
determined opposition in both the senate
and house to permitting this immense
mineral wealth to pass into the hands of
a private corporation.
To prevent the immediate formation of
a great asphalt trust various plans have
been proposed. The suggestion made by
Representative Lacey of Iowa is for the
government to lease the lands and have
the mineral removed upon a royalty the
government retaining the title to the
lands.
1t is a similar basis that the output
from the Lake of Trinidad is controlled,
the British government deriving an i'm
mense annual revenue from the property.
Against this plan there arises the cry of
government ownership.
The other plan proposed contemplates
the opening of the gilsonite lands to set
Element but with the restriction that no
one person shall be allowed to locate more
than 40 acres. Captain Beck, agent for
the Uncompahgre reservation, who is in
washington, when asked what would be
the result of this course, said there could
be no doubt that it would terminate in all
the gilsonite lands soon passing into the
hands of monopoly.
Captain Beck explained that great diff
Aculty is experienced in getting the gill
sonite to market The Denver & Rio
Grande railway, which is the most ac-
cessible line, is 125 miles distant. At
present the gilsonite taken from adjacent
Iodes is placed in sacks and carried to
the railroad in wagons. This makes the !
mining very expensive. It is figured that
the actual cost of mining is but S71z cents
per ton, while the expense of hauling it
to the railway amounts to S12 or SIS a
ton
The railway freight to St. Louis or to
Chicago, the nearest eastern points of
distribution, is 50 a ton. making the total
cost of mining and transportation to these |
markets about SIS a ton. If man owned
but 40 acres of this mineral land. says
Captain Beck, it might possibly not justi
fv him to take out the mineral and he
would be forced to sell his small allot-
ment to a syndicate.
such a syndicate would of course con-
struct railroad from the mines to con-
meet with the Denver & Rio Grande. thus
greatly cheapening the marketing of the
product The syndicate could afford to
reduce the price without lessening its |
Drofts. and at the same time create an
Increased demand. Or it could regulate |
the output and maintain the higher
prices.
The net profit now realized on gibson |
tie shipped from the vicinity of the I'm
compahgre reservation is $40 ton. The
nronU Of a syndicate controlling the en-
fire deposits and reducing the carrying
charges would doubtless be twice as
7nucn per TOM or the enormous sum of
s460.oov,VJv-
IT is certain that when the reservation
Is opened the development OF the gibson