The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-08-29
Probable That Two Well
Known Men Will Be Drawn
Into the Trouble Before It
Settles Down.
ALASKAN RAILROAD
CAUSE OF TROUBLE
Western Senators and Promi.
nent New York Financier
Are Said to Be Implicated
-GobbIe Claims.

<Am0rlcon news Servtcey
Washington. Aug. 3S-The belief 10
rapidly increasing in administrative
circles that the present Ballinger-Pin-
chot row will probably result In . sen-
sational scandal before the matter Is
finally settled and that the reputation
of several prominent men will suffer
when all the facts become known ~
now seems likely will be the case.
The names Of two well known men
In particular are mentioned among
others that probably will be dragged
into the affair before long. One q
these is a United States senator from q
western state who with his associates
is heavily interested In mining and
railroad operations In the far west.
while another Is one Of the foremost
financiers OF the world whose home
is in New York. These western SEN
'ators' business associates are inter-
ested in the construction Of q railroad
in Alaska and have already built about
seventy-ive miles OF track from Cor
dova inland, the construction work In
cluding the building of several steel
bridges.
"GobbIes Up" Claims.
The construction of the railroad "a
only one of several important enter
prises which the big syndicate. which
has millions of dollars at stake. has
undertaken in Alaska. II has gobbled
up as the expression goes. hundreds
Of mining claims in that part Of the
country, the probable richness OF
which have been pretty closely esti-
mated by the syndicate's mining en-
gineers before the claims were bought
for fraction of their actual value In
mineral. but which owing to lack Of
transportation and with the remote
ness from tidewater. where ore may be
shipped to the big Guggenheim smelt-
ers at Tacoma, Wash. the original dis
covers of the claims could not develop.
Among these claims Is the famous
Homestake Copper mine. admitted to
be one of the richest in the world. sit
uated about 100 miles from Valdez.
and where more than $JO!OAOOO worth
Of copper ore. 1t Is claimed. II In
sight. to say nothing of that below the
surface of the ground. Included In
the syndicate which owns this enOr-
mously rich mine are J. Pierpont Nor
gan. the vanderbilts. and other large
moneycd interests of New York. but
until the railroad is built into that
part of Alaska no attempt will be made
to work the property owing to the Inn
mense cost Of transportation In Alas
ka under present conditions. With
the entrance OF the railroad into these
sections it will be possible to devel-
op them at stupendous profits.
OF Fine Quality.
The railroad syndicate makes no at
tempt, in Alaska. remote as Il In from
the more civilized part Of the United
States, and where news travels slow
ly to evade acknowledgement Of its
primary intention to ''go after coal"
before attempting to extend the rail-
road into the mining sections The
coal deposits inland from COrdOva.
which is at deep water. are Of immense
extent while the coal Is Of an excellent
quality and suitable for ''steaming''
purposes. In the Chugach National
forest reserve. which is within easy
distance of the railroad In question.
l0c Groupings are easily OckluCus
while in many cases the coal proper
is visible in imense blocks.
With the Cunningham claim salts
factorily disposed of by the depart
ment of the interior. the patents to
the lands in question issued. the rail-
road interests which are heavily in
terested. would be In a position TO nx
whatever rates they pleased for trans
portation from the Alaskan seAboard
to the interior and vice versa, and In
view of the fact that they now own
and operate the largest and most i'm
portant steamship line running from
Seattle to Valdez. touching at Cordova.
could also fix transportation rates 70
Seattle and Tacoma, where their i'm
mense smelters are located. Without
a large coal supply available. however.
their scope and plan Of operation
would be greatly restricted. while in
addition the opportunity to sell co1l
to the United States soyernment for
the use of the naval vessels and at \
handsome profit would also Be miss.
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