The San Francisco call., 1909-11-20
FRAUD CHARGES
FLATLY DENIED
BY BALLING[R
Secretary Issues Statement De-
claring Accusations in Cum
ningham Case False
Explains Action on Alaska Coal
Entries; Defends Deschutes
Valley Grant
Cabinet Officer Asserts He Is
Firm Champion of Ma.
tiOnaI Conservation

psrtment today denied many reports
recently circulated concerning the con-
duct Of his department. He said:
TO say that I ever advised, ordered
or lent support to any effort to perpe-
trate a fraud upon the government is
not only false. but is Intentionally so,
If made by any one who has taken the
trouble to inquire into the facts.
In explanation OF the charges in con-
nection with the Alaska coal lands. he
went into the history of President
Roosevelts withdrawal from entry of
all coal lands Of Alaska in 1906, show
ing that the order was so modified by
Secretary GARFIELD as to validate all
applications made prior TO May 16, 1907.
He then called attention to the fact
that in his annual report Of 1907 as
commissioner of the general land Of
fee, ne had recommended action by
congress TO prevent any formation of
combination or trusts by claimants to
coal lands. and adds:
NO CLAIMS PATENTED
The antitrust clause of the Alaska
coal act as finally passed May rs, 1905.
was not submitted by Clifford Pin
chot. but was submitted a suggestion
10 Secretary Garfield by Representa-
his letter OF May Z. 1908. and favorably
considered and indorsed by the secre-
tary in his report TO congress-
Ballinger then stated that no Alaskan
coal claims have been patented and
says that the investigation Of all such
claims with view TO determining their
validity has been vigorously prose-
cuoed. He denounced as "a plain, ordi-
nary falsihcation" the report that he is
interested in $4,000 shares of the
Alaska petroleum and coal company.
The sta tement that I or my former
firm was attorney for this company, or
ever advised or counseled it in rs effort
10 acquire title TO public lands, is also
without basis in fact" added Ballin-
ger
CONSULTED BY COAL COMPANY
BaIlinger said il was true that in his
private practice after he had resigned
as commissioner Of the land Office, he
had been consulted in the preparation
Of articles OF Incorporation under the
law Of 1908. which had been approved
by the president and which permitted
Ire entry OF as much as 1850 acres
Of co Al land. IL was not true, declared
Eallingcr, that he had either in this or
IN any other connection given any ad-
vice looking to a fraudulent act against
the government.
When asked about a statement that
he had said that the proper course to
take with the public domain was to "di-
vide il up among the big corporations
and let the people who know how make
money out of it," Ballinger replied:
So ssinine statement hardly merits
a. denial OF course. / made no such
statement Such thought could not
be entertained by any normal intelli-
gence. What ] really think in regard
10 the public domain and the cOnserVa-
tiOn Of natural resources may be found
afccf ffav11
or the general land Office and in my
present annual report. soon TO be pub
iished; have not only been consist
emily in the vanguard OF the conserva-
tiOn movement, but ] have sought to
give II permanence along lines reason
ably within the spirit Of present law
and to secure adequate additional laws.
He made an equally emphatic denial
Of statement that his firm is known
as the Standard oil legal advisory in
Seattle.
DEFENDS OREGON GRANTS
Ballirger also made response to a
charge that. in granting rights Of way
10 Hill ana Hartman railroads through
the Deschutes canyon in Oregon, he had
rendered impossible the construction or
z power plant in the canyon. Admitting
that the department had given its ap-
1roval 10 the applications, Ballinger
said that this course had been pur-
sued under the law and in pursuance
Of the wishes OF people of the section
anecte6 but not without taking the
precaution Of inserting a requirement
that. when needed for power plant pur-
poses. such railroad should elevate its
tracks 100 feet.
But this action, he said insured TO
the people Of central Oregon competing
lines Of raf3roa ds and at the same time
guaranteed the use Of the water power
when the country needs II. He also
quoted records in the case TO show that
the proceeding had been in strict COM
pliance with the law.
Cunningham Hearing Opens
SEATTLE. Wash, Nov. 19.-The gov
eminent began the Introduction of evil
dence 10 show that no development
work has been done on the Cunning
ham coal claims in the Katalla district
or Alaska at the hearing before Special
Commissioner William J. McGee today.
The first witness called after the in
PRODUCTION Of the affldavits of the
claimants. corroborating the afhdavit
Of Clarence Cunningham, which showed
the intent of the entrymen, was An
drew L. Kennedy.
kennedy. who is coal expert, was
sent 10 Alaska in July of this year by
the government TO investigate the
work done toward developing the
claims His testimony today covered
he found evidences of prospect work,
Lut said that he did not find any evil
oence Of development work
J. NJ. Sheridan, attorney for the gov
ernment, brought out the fact that in
several cases where trails had been
built they were not for the purpose Of
leading TO the works, but served as
connections between different claims
A number OF afidavits were intro
duced TO show that the entrymen did
not make their filings for their own
exclusive benefit. but that before MAX
ing them they had entered into an
agreement to Consolidate them
The entrymen. in an afhdavit By
Clarence Cunningham, deny that the
.Guggenheinns have or ever had any in
terest in their claims.
Answering the contention thai. the
Cunningham afidavits and those OF the
other claimants regarding the under
standing" among them that company
would be formed which would take
over the 33 coal claims and operate
them under one corporate ownership,
\ the defense will argue that this ''un-
dersta ndfng1 was never at any time
vital factor as Influencing the individ-
ual entrymen in obtaining their claims.