New-York tribune., 1910-09-10

oily
The Cunningham coal land claims were
then described. Cunningham being referred
To as "the promoter of a plan whereby ne
and his associates were to prove up the
land and then operate it as one mine by
means Of an association or corporation; he
was to have one-eighth of each subscriber 3
stock for his services in prospecting land
and managing the deal
The findings declare that strong evidence
was produced that this plan adopted
and acted upon by the subscribers; that the
Cunningham entries can be cancelled for
fraud if vigorously prosecuted by the gov
ernment; that the claims contain from fifty
million TO ninety million tons of coal"
Morgan Gugeenheim Syndicate.
The composition of the Morgan-Guggen-
helm, or Alaskan. syndicate is given and de-
clared to be IAN association organized to
exploit Alaska" The findings of Mr. Madi-
son declare this syndicate entered into an
option agreement with the Cunningham
claimants in 1907. whereby said claimants
were to organize 2 corporation capitalized
at $4,000. 600 and convey one-half the stock
to il for s250,OO0 The coal lands of the
Cunningham group were TO be decided to
said corporation. The evidence fairly
shows that the syndicate aimed at the
monopolization of the Bering River coal
fields Mr. Madison continues:
In December. 1907, Mr. Ballinger, as Com
missioner of the General Land Office, at
the request of Ex-Governor Miles {. Moore,
of Nalia Walla, Wash, cunningham
claimant. ordered the Cunningham claims
to patent. Previous to this order the
Guggenheim option agreement had been
claims
patents were being delayed
All Alaska coal claims were under sus-
picion of being fraudulent. The order
under such circumstances was wrongful.
CLAWS, who had few days before been IN
structed 10 investigate all Alaska coal
claims. and who was given formal notice
of the order, protested against IL ana the
order was revoked.
After resigning as Commissioner. Mr.. Bal
iinger acted as adviser and counsel for the
Cunningham claimants i'll their attempts
TO obtain patents. lie prepared lengthy
Sented it to the Secretary OF the Interior
and Commissioner of the General Land Of
fice in an attempt 10 explain away a for
mer affidavit OF Cunningham and the en-
tries in the Cunningham journal, both of
which had been secured by CLAWS and
were the most damaging pieces of evidence
against the claimants in the possession OF
the government
Mr.. Ballinger violated no statute in so
doing but he did violate the moral obli-
CATION which was upon him not to at
tempt TO embarrass the government in an
effort TO conceal the entries begun while
he was commissioner and which II was his
duty to aid in good faith while in office.
The act of May 2S. 1908 permitted a con-
solidatinn of coal claims TO the extent of
1850 acres where the locations had been
made in good faith. The construction
placed upon the act by Messrs. Pierce,
bennett. Finney and Clements. and SEEM
ingly by Mr.. Ballinger. would have con-
doned all agreements to combine In viola
ton of the act of April 2S. 1904. The Pierce
decision had that effect. Through the eff
forts of CLAWS and Henry NJ. Hoyt this
decision was reviewed by the Attorney
General and reversed.
In the summer of 1909 II. II. Schwartz,
chief of the field of the General Land Of
fee. endeayored TO force CLAWS to report
on the Cunningham coal claims and go to
trial or hearing in the proceeding to can
eel the entries. without an examination OF
the claims to ascertain if the improve
Inents were being made in a manner to
indicate that the claims We're being operat-
ed in common. This was an important cir
cumstance in the government case.
After CLAWS was removed from charge
of the cases. James NJ. Sheridan, who was
sent to succeed him, reported that he was
right and the field examination was made
prior to hearing.