The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-10-19

TITLES ALLEGED TO HAVE
BEEN ALLOWED BY FRAUD
Thousands of Acres Said TO
Have Been Taken in, and
Monopoly Established.

President Roosevelt has directed the
/ nsbartnent OF Justice, says the Wash
.oton correspondent of the Chicago
Tnbnue, to institute legal proceedings
| ,ssipst the Union Pacific railroad with
view TO securing the restoration
:, public domain Of hundreds of thou
u,ds OF acres of valuable coal and
,rricultural lands alleged TO have been
rorired fraudulently by the railroad.
This action is the result of investiga
ions made by special agents of the In
sror department and by the Interstate
'ommerce commission. The informa
ion gathered by departmental agents
i,s been turned over to the Department
n4rce commission has confided 20 Com
-issioner Prouty the duty of preparing
is report on the inquiry it conducted.
Ir. Prouty's report is highly sense-
appal, and duplicates a large number
of persons in alleged fraudulent tran
astions in the interests of the
ijuion Pacific. One OF the results, il is
expected. will he the Institution OF &
slit BIZ the Government for the recov-
ery Of 10000 acres Of uhdeveloped
but valuable coal lands, worth $1,000
6lO annually to the Union Pacific on
VI, Prouty's estimate.
Road Coal Trust, Report Says.
The report also will show that the
Union Pacific maintains q monopoly
Of the coal business IN the States IL
Tavsrses. The information will be-
tarped over to the Department Of Jus
lice, which now has q special assistant
sttorney-general in Utah preparing
preliminary legal proceedings
Tx. - NJ proY%@- which ~ III
be sent to the President tomorrow or
Friday. is the result OF his investiga~
lions last summer IN Union Pacific
,siritory He found the Union Pacific
lad used men to- enter claims for
binds which its mining experts pro-
rouuced 10 be vsluabl and later sc-
CURED the claims, Byrus Beard,
Judge Of the Supreme Court Of Wyom-
ing testified he used $4,000 provided
by tie railroad company 10 enter land,
gb.eauently relinouishing it to the
company for 5000 Other men were
GOT so fortunate, bartenders and
esmblers getting as low as S5 and 50
Tor use Of their names.
The law provides that company or
lMociation may not secure more than
four sections, but by methods pursued
BY the Union Pacific this wise pro-
vision was pulli6ed to the grave IN
Jury Of the people Who depend upon
thcse lands for their fuel supply
independent Operators Tied Up.
PAW is to prevent independent oper-
stors from obtaining valuable claims.
81 the terms Of the grant given TO the
COMPANY every alternate section for
twenty miles on either side Of It's route
belongs TO it.
To quote one of Mr. Prouty's as
.ociatss, the country through which the
Union Pacific runs may be compared
70 2 eheckerboard, the black squares OF
which are owned by the railroad and
the red by the Government, or persons
Who have acquired them from the Gov
srument. There are 10 State or Terri
torial roads through this region, and
ii is difficult for private individuals to
obtain access to lands IN which they
sre Interested without consent of the
company. The latter does not hesitate
70 use the law to prevent tTespass on
lis land.
This situation has enabled the Union
Pacific absolutely to control the coal
situation N the territory which 1T
t!avsrses. It owns the Uniou Pacltc
Coal company, capitalized at $1,000
-sf1 clu lu7 NoJs ptliS| SSoi N'A.I
The railroad and the Two companies, u
Is alleged, cooperate to obtain and hold
coal lands and to control their develop
aent, The principal production is OBJ
tsined through working the Rock
Springs coal mines IN Wyoming, from
WHICH $500 tons Of coal are taken
DAILY. It is estimated that the plant
did not cost more than S50Q,oOo, anu
tie expense Of operation more than was
net by the sale of screenings.
Dollar Ton Company Proht
The company. il is believed, makes q
Noht Of at least a dollar ton on this
coal, whereas il West Virginia opera
i9rs think they are doing well il they
make ten cents ton. The company
ess driven independent coal operators
tTay. aud thus is III 3 position 10 nx
As Wholesale, and, in many cases, the
ls.ail price of tho kind OF coal oo-
Hined from its mines.
There is reason to believe the orlgand
methods charged against the Union Pa
Ntc have been the subject OF recent
conferences at the White House be-
.."cen President Roosevelt and Secre-
.aly- Hitchcock It was suggested that
NE withdrawal of the coal lands from
seIltTy would arrest froudulept practices
;lit result has followed, but the Prcsl"
~nl Is not satisfied.
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