Los Angeles herald., 1910-03-26
BALLINGER-PINCHOT INVESTI-
CATION is RESUMED
DIRECTOR OF SYNDICATE TELLS
OF OPERATIONS IN NORTH
Statement Made That $15,000,o00 Has
Been Expended in Development
and Not One Cent of
Profit Realized
Associated Pressl

day, after an adjournment of practi-
Cally two weeks.
AS soon as the committee met this
morning, Attorney Brandeis, repre-
senting Louis X. CLAWS, and others,
sprang a surprise by requesting Sec
rotary Ballinger be called as one of
his witnesses. Brandeis said at first
he wished to identify, by Mr.. Ballinger
two letters he desired to introduce in
evidence at this time.
Questi lng further Ly members of
the committee as to his intent, he ad-
mtted he desired to conduct gem
eral examination of the accused cab
met official.
Counsel for Ballinger objected to this
and called forth from Brandeis the re-
mark that from his letters he had al
ways supposed Ballnger to be ready
to appear whenever and as often as
any one connected with the inquiry de-
sired
Some members of the committee
seemed to think Ballinger, as the per-
son most interested in the inquiry,
should have opportunity to make his
statement first in his own way and
not subject himself to cross-exam-
ination before being examined in chief.
The matter was passed over. to be de-
cided later in executive session.
Try to Show Control
The witness stand was occupied dur
ing the entire day by Stephen Birch,
managing director of the Morgan
Guggenheim syndicate in Alaska.
Members of the committee became
deeply interested in the operations of
, the Alaska syndicate and they piled
the witness with questions from every
possible angle Much of the question
ing was intended to show that the
Guggenheims practically control
Alaska. Birch stoutly denied this.
He was asked by Representative
Graham "if the Guggenheims got con-
troll of the coal lands in Alaska, what
would there he left?"
Birch said he did not think this was
fair question to ask him. He adj
mitted that the Guggenheim interests
were large, that they had invested $l5,-
100000 already and had contracted for
the expenditure of other millions.
There had been no return from these
investments as yet. But the syndicate
had hopes"
As to the Cunningham claims, Birch
produced the option that a committee
of the claimants had given to Daniel
Guggenheim July 20, 1907. He declared
this option had been accepted by the
Guggenhems December of that year.
The claimants, however, had never
lived up to its terms. Cunningham, he
said in January or February, 1908, had
contended that the Guggenhelms them
selves had voided the option by chang
ing their railroad base from Katalla
to Cordova. and, Furthermore, the OPP
ton was of no effect because ma
1ority of the claimants had never rati-
fled It.
Brandeis sought to show the Nor
gans and Guggenhems, with their
great power and influence in this
country" must have brought pressure
to bear during the last two years to
get patents granted the Cunningham
claimants.
Birch declared. however, that he
knew of no such efforts.
lceberes Just as Valuable
AS to his estimate that coal I'm
Alaska was worth so cents ton, and,
therefore, the Cunningham claims rep
resented an actual value of $25,OOO,0OO,
Birch declared ii was just as sensible
to say the icebergs in Alaska were of
inestimable value. The icebergs, he
said. would be valuable if they could
be brought to market in this country.
So it was with the coal, but first the
transportation facilities had to be pro-
Vided.
Representative Graham asked the
witness a number of questions designed
TO show the Guggenheims practically
have a monopoly of transportation
facilities to Alaska from the United
States.
Mr.. Birch declared the syndicate
lines operate twenty eight. He denied
the Yukon e. White Pass railroad
was controlled by the syndicate or by
any of it's members.
Mr.. Birch said that IL anybody else
wished TO get to the copper country
they tried to do as the Guggenhelms
did--build a railroad.
Nov. Mr.. Birch" concluded Repre-
sentative Graham, 'if the syndicate
owned the Alaska coal, 1T would own
Alaska, would it not?'
mo, sir"
Representative Madison asked if 1t
were not a fact the Alaska syndicate
steamship company handled more bust
ness from the United States to Alaska
than did all the other lines put to-
gether.
Birch was not willing to admit this.
He said he would submit the figures
later.
,.Brandeis drew from the witness that
the development of Alaska depended |
almost wholly upon the opening of the
coal fields. When he had done this he
turned fiercely upon the witness and
demanded to know If, In view or this
fact the Guggenheims had sat quietly
for two years and made no exertion to
have patents issued for the Cunning
ham group.
"Ali we did was to tell Cunningham
to hurry up with his patents"
the influence and power of the Morgans
and Guggenheims in this country, they
made no efforts in this direction except
your feeble efforts? Is that what you
wish this committee to understand"
ut is"
When the committee and Mr. Bran
deis finally had concluded their direct
and cross-examnations of the witness,
he was turned over to Mr.. Vertrees.
Wasted Money at kataIIa
Mr., Birch said the Alaska syndicate
had spent $1000000 in an Intellectual
attempt to construct a harbor at
Katalla. This was in 1906 and 1907
before there was an option on the
Cunningham claims. He said it was in
January or February, 1908, that Cum
ningham claimed the option agreement
had been made void by the changing
of the Guggenheim railroad base from
Katalla to Cordova-
Mr.. Birch said he went to see Mr.
Garfield when he was secretary of the
interior, asking If some practical legis-
latlon could not be secured for Alaska.
But l did not get much satisfec-
ton" said the witness. subsequently,
however, q law was passed In 1908. IL