The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1909-11-24

Many of the affidavits deny that
the entrymen had any agreement to
consolidate their clairns and interests
but the agreement to consolidate Is
set up in detail in the private note
book of Cunningham, a copy of which
forms one Of the exhibits. There
are, also, many positive and specific
denials that there were negotiations
with the Guggenheims, but one of
the exhibits is a memorandum of an
agreement proposed va committee
of the entrymen to Daniel Guggen-
helm in New York last year.
This proposed agreement contem-
plated the formation of a $1,000 900
corporation, to which the Cunning
ham entrymen should transfer their
33 claims, together with certain TIM
Der and water rights, receiving in re-
turn one-half the stock of the COM
pany. The other half of the stock
was to be taken by Guggenhem for
$250,000. Guggenheim was to lend
the company 100000 more, and this
money was to be used in developing
the mines.
Guggenheim to Build Road.
Guggenheim was to construct a
railroad to the mines, and become the
exclusive purchaser of all coal mined.
The price fixed for the coal in the
proposed agreemen is $1.25 a ton for
all coal used or needed by Guggen-
helm and $2.25 a ton for all that he
could find a market for outside. Under
this agreement the claims would have
formed the basis for a hard and fast
Alaska coal trust, through which the
claimants would have received a
profit of 81 ton on all coal sold in
the open market, the profit to be
received by the Guggenheims to be
fixed by themselves.
An interesting exhibit is copy of
a report by H. L. Hawkins, an expert
sent to examine the mines in 1905.
Hawkins found that between Trout
and Clear creeks, on the Cunningham
claims, there was approximately
100, 100000 long tons of coal in UNI
broken measures above the proposed
tunnel level, all of which could be
mined from one tunnel at a premium
cost for extraction. Allowing one
third for loss. this would provide an
output of 1000 tons a day for $50
years.
Had Many Plans Afoot.
Hawkins estimated the cost of
railroad to tidewater at Kanak island
to be $724,500, and of a harbor at
that place $275,000. This completed
he estimated, the cost of rail trans
portation to tide water, allowing 10
cents a ton for accidents and wrecks,
to be so cents a ton. He reported,
recommending the claimants to re-
cure certain water power upon
which 1000 horse power could be
developed for 100000. Also the pur-
chase of seven claims of the Chezum
group to the northward. Also that
| the claimants secure all the timber
| possible, as great deal would be
| needed in mining operations. Also
that the claimants act quickly, to get
| into the market before the extern
| sion of the Alaska Central railroad
opened the coal mines of the Matan-
uska district since that coal, being
of high grade. would be difficult to
displace in the market.
Copies of two circular letters Of
Cunningham to the claimants were
offered, showing that the claimants
had paid in approximately $4,000
EACH and that s131. 900 had been ex-
pended by Cunningham for them.
| One of them states that four claims
not valuable for coal are being held
for the timber on them.
| Although the charges made by the
| government on which the case is be-
| ing tried do not allege the use of
dummy entrymen. there are many
| threads of evidence indicating that
such devices We're resorted to in the
early history of the claims In the
Cunningham notebook there are en-
tries Indicating that at one time "a.
b." a mining millionaire of Spokane,
carried several claims in the name of
others.
One of these entries says:
81 was advised that W. H. Warne
and W. E. Miller had each taken one