Los Angeles herald., 1909-11-25
ALASKAN COAL
CASES PROBED
GUGGENHEIMS' INTERESTS IN
CLAIM SlFTED
HEARING AT SEATTLE GROWS
MORE INTERESTING
Banker Who Built Exposition; and Is
Involved in Cunningham Affair,
One of the important
Witnesses
lAssoclated Pressl

SEATTLE, Nov. 24.-For the first
time since the hearing opened the re-
lations of the so-called Guggenheim
interests to the Cunningham claimants
was taken up by the attorneys for the
claimants in the inquiry into the Alas
ka coal land cases today.
Although it had been expected that
the claimants would not put any wit
nesses on the stand until the hearing
was transferred to Spokane, the attor-
neys for both sides held a conference
this morning and decided to go ahead
with the case here, taking the testi-
mony of those witnesses who live in
Seattle.
Charles ]. Smith, the Seattle banker,
who built the Alaska -Yukon-Pacific ex-
position, and who is one of the claim
ants interested in the Guggenheim
group, was put on the stand by the de-
fense at the opening of the afternoon
session.
Mr.. Smith, who has had several years
experience in operating coal properties
in the Cascades, was interested in the
Alaska claims by Mr.. Cunningham,
who was authorized by him to file on
a claim in the Katalla district.
Mr.. Smith said there never had been
any intention of holding the claims for
some outside corporation. He said he
knew it would be impossible for one
man or three men working together to
successfully operate a mine in the Ka-
talla district, owing to the isolation of
the property, and the expenditure that
would be required to get the coal to
tide water
He said IL was his understanding
that they would join together for the
purpose of carrying on only that work
which could not be successfully carried
out by the claimants acting separately.
Mr.. Smith said he had paid $2200 as
his share of the expense of making the
filings. and carrying on the prospect
ing work. In July, 1907, Mr.. Cunning
ham informed him that the so-called
Guggenheim interests proposed to build
a railroad from the mines to tide wa
ter at Cordova, Alaska, and said that
a meeting was to be held at Spokane
TO consider the proposition.
Could Not Attend
Smith was asked to attend the meet
ing, but said that he could not go.
Later Cunningham informed him that
a committee had been appointed at the
Spokane meeting to take up the matter
with a representative of the Guggen-
helm interests. AS a result of the ef-
forts of this committee an agreement
was drawn up. which provided that the
Guggenheims would build a line from
the mines to tide water, in return for
which they were to handle the output
of the mines. Mr.. Smith said he was
not a party to this agreement, which
subsequently fell through, and that he
never sanctioned in any way the ac-
tion of the Spokane meeting in opening
negotiations with the Guggenheim in
terests. Later some of the claimants
formed a chartered company to build
their own railroad.
Smith then told of little tilt he had
with L. r. CLAWS, at that time a spe-
cial agent for the government. Cum
ningham brought CLAWS into Smiths
office after the claims had been held
up. Cunningham said that CLAWS
wanted them to sign an affidavit set
ting forth that they had no intention
of holding the coal claims for the Gug
genheims.
II talked a little short" said Smith
on the stand, land / told CLAWS that
] had made all the affidavits I was
going to make. ] had already signed
three or four affidavits declaring /
had no intention Of forming an Illegal
combination, and / was tired of the
delay. / said that I was willing to
let the matter rest on the statements