New-York tribune., 1910-03-26
BALLIAGER WANTED
BY GLAVES'S COUNSEL
As WITNESS.
Committee Considering Re-
quest-Morgan-GWggenhsim
Operations IN alaska.
rrrcn LIZ rr-hrn. eurosn.l


Erasaiagton. March .5.-The rafa,acations
81 thc MotEan-Guggc-hc syndicate IA the
Development of Alaska Overshadowed tho
real Olrelon "a issue in The Baliinger-E'l
Chot controversy az to-0ay's meeting of ihe
i,,vesiiEaliug comu!tlee. IL WAS an enter
tCiniag aad instructive session, howcvo',
for the committee Ea.nej q gOol icea 90 the
extent OF the operations of tac syndicate
in Alaska, anl considerable light W1s
throNn on IRE value az the natural re-
sources Cf that territory. Stephen ID. Birch.
of NCv York, managing d.rector Of the
syndicate, Was on THE st41d az cay. Juaa
\. Steele, a. New York, attorney for tie
syndicate, Mil TESTIFY tomorrow.
a. tie opening ~ to-lays he2r.ng Ar
Brandcis. representing Claws and others.
announced that he Wanted Secrelary Sal
llasor called as a witness al orce. Judge
Vertnoes, counsel Tor NIr. Balhnger. op-
posed this request. and said that his attor-
neys ought 20 have discretion as 10 when
he should appear. Senator Sutherland sug-
geSted that thc cross-examination OF Mr..
Ballinger ought not 10 precede his direct
examination. Other members of the COM
mittee toc.z TIE same view. anG said that
Mr. Baiiinger ought 10 have an opportunity
"a make his statement IN his own way be-
fore being crCss-cNamincd. Chairman Nell
non announced that Mr. 8-cndeis's request
would be considered by tie committee In
executive session. AS thc critics OF the In
terior Department have practically COM
plete6 their case. and q Is the purpose Of
judge Nertrees 10 cal the Secretary of the
Interior as the lrst witness .n rebuttal. Il
is doubtful n the committee VIII favor the
roquesf OF Afr. BrHldeis.
ousssnheirn and Cunningham Claims.
The real purpose os the critics Of the In
terior Department in calling Messrs. Birch
and Steele Is 20 show the relations existing
between the NorgLn-Guggcnheim syndicate
ana the Cunningham coal claimants. Il
had been charged that Clarence Cunning
ham'n 0Hdavit. which Mr.. Ballinger left
with Secretary Garhold in the summer Of
1905. contained an absolutely false state
nent. az Mr. Cunningham IN that AFFIDAVIT
Hsid that be and his associates had no
agreement with any corporation OF syndi-
cate for the development Of their coal lands
This afidavit was dated September 4. 1905
Examined by AR. Brandeis. Mr.. Birch
testified that on July 90 1907. Mr.. Gun
ningham and two other coal claimants en-
tered into an agreement whereby the
Morgan -Guggenheim syndicate received an
option 20 take out certain coal from the
Cunningham claims. On July %. 1897
Daniel Guggenheim telegraphed Ny. CGn-
ningham q formal acceptance og the option
Ia cross-examining the witness. Judge Yer
trees brought out the fact that Il was the
understanding OF the Guggtnhcinl- Morgan
Interests, az the time the option was given,
that IL was subject 10 ratification by the
other claimants. Ar Birch said that in
January or February, 1905 Mr.. Cunningham
took the position that the option had
lapsed and was void for two reasons. First
because the syndicate had not carried out
its original plan 10 construct a hRrbor az
Natalla and 10 build a line of railroad from
katalla 70 the Cunningham claims, but In
stead had abandoned work on the harboT
where Sl.0o0.00o mad heen spent and had
started 20 cons1ruot a railroad TO the coal
feds from Coudoya. instead of from Ka-
tana; and. secondly, because the other
claimants refused 10 raufy the agreement
made by CunEineham and his associates
The witness said tnat ever since the oarls
part of 1905 Cunningham and his associate:
have insisted that there was no enfoToeabl,
contract. he testified that 10 formal notice
~ the abrogation OF the contract had beer
sent 10 the syndicate by Mr. Cunningham
and said he knew nothing about the Gun,
n!ngham affidavit aled with AR. Gardeld
Mr.. Cunningham, had nst conferred Wit
him on the subject.
when did you first learn that such al
AFFIDAVIT had been madee' asked Mr
BTandeis.
Just now" replied the witness n,
made the same reply when Mr.. BRANDED
asked him when he first learned that sucl
an afidavit had been presented 10 Mr.
Garfield.
Alr Birch INSISTED that the AIorran-c,ug
genheim syndicate had done nothing what
ever 70 facilitate the issuance OF the pat
ents 20 the Cunningham claims. Then
was nothing Tor Us 70 Co." he said, addinl
that In none q his conversations viii
Clarence Cunningham ha5 Nr. Balllnger'
name been mentioned.
D Saw Herbert Parsons.
~ Just before the session closed Tusp
Ve-tyees asked the witness Il he had don