The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-02-20
COAL WORTH BILLION
Staggering Figures Given
by Guggenheim Agent.
PROFIT OF $2Oo,OoO,OOO
Managing Director OF Syndicate
Testifies Before senate Committee
WickerNhnm Says He Was Onered
job, but Refused TO Accept II.

stephen Birch, managing director of the
Morgan-Gugsenheim syndicate. testified
yesterday before the Senate Committee
on Territories that the value Of the coal
deposits in what are known as the Gun
ningham claims in Alaska. is 1000. coo.
and II was for this property your syn
dictate was to pay se50.aOO?" inquired Sen
stor Frazier, OF Tennessee.
Yes. replied the witness. when the
claims were patented"
And you we're very anxious to see the
Cunningham claimants get their pat
ents?' continued Senator Frazier.
Yes; we were glad to see every coal
claimant in Alaska get his patents re-
piled Mr. Birch
did you take any steps TO hasten the
issue OF the patents TO the Cunningham
claimants by the government"
mo; we took no steps replied Mr..
Birch.
But you were very anxious TO see the
patents issue?'
Certainly"
Mr.. Birch and John \. Steele. general
counsel for the syndicate. after their di-
rect testimony on Friday. reappeared be-
fore the committee yesterday to be cross
examined.
Profit of 100000. 900.
Mr. Birch did riyst Of the testlfying
He fixed the value Of the entire coal fields.
of Which the Cunningham claims are a
part at nearly billion dollars. lie es-
timated that it would cost S7OOO0O.oOO TO
mine and market the coal. leaving a net
profit of $2e0oo0GO0 10 the interests that
should develop the field.
Mr.. Birch denied the charges hereto
fore made before the Committee on Ter
ritories. by James Wickersham. Delegate
from Alaska, that Mai. ". p. Richard
| son. L. S. A.. and ex-Gov- HOggatt were
in the employ or the syndicate He de-
clared that neither Mai RICHARDSON or the
former governor had ever been employed
in any capacity by the syndicate.
Just before the conclusion Of the morn.
ings hearing James Wickersham. Dele.
gate from Alaska. asked permission 10
question Messrs. Steele and Birch. OBJ.
lection was made TO granting the request
Subsequently in executive session the
committee decided that Mr. Wickersham
could prepare and submit his questions
10 senator Beverage. chairman OF the
committee. Who would in turn PROFOUND
them To the witnesses In the noon re-
cess Mr. Birch asked permission 10
change one Of his answers al the morning
hearing
He was asked by Senator Beveridge
whether eX-Gov Hoggatt, Mai ",
p. Richardson. or Delegate James Wick
ersham had ever applied to the Morgan
GGgsenheim syndicate for employment
The stenographers report made II ap-
pear that Mr. Birch had answered IA
the negative. He informed the committee
that he had been incorrectly reported as
answering in the negative
Position Was offered Him.
When Messrs. Steele and Birch cor
rected their testimony given at the morn
Ing session their answers were made to
read In the record that James Wicker
sham. Delegate from Alaska, at one time
applied for employment a. attorney for
the Morgan-Guggenhe syndicate. This
was in the interval after he ceased to
be United states Judge al Nome and be-
fore he was elected a Delegate Ia Con-
gress. At the time Mr.. Wickesham was
practicing law. This statement was IN
reply TO the question whether either Hog
gait, Mai Richardson, or Wiekersham
had ever applied for employment To the
syndicate
Delegate Wickersham then took the
stand and produced a letter from the
syndicate managers offering him employ
ment as attorney. This offer. he said.
was declined. lie declared that he had
never made application, that the offer
came from the syndicate
This ended the testimony on Alaska
and the relation Of the syndicate to Alas
kan development