Arizona republican., 1910-01-26
THE GOVERNMENTS SHARE
Would Amount to $2,000,- 900 An Acre-Letter to Senator Beveridge Warn ing Him of a Lobby Head ed By Former Senator.

Washington. Jan. 25.-A new factor appeared today to add intensity to the already sufficiently excited situa- tiOn over the Alaska coal lands, on the eve of the beginning of the Bal finger Pinchot investigation.
 John F.. BalIaine of Seattle. said to be the largest individual property owner in Alaska, made a proposition in writing to the senate committee on territories, of which Senator Rev. eridge of Indiana is chairman. offer ing to the government a royalty of 90 cents ton orA the coal mined for lease of 5000 acres of some of the choicest coal lands in Alaska, in the Katalla and Matanuska districts. Such tonnage royalty would net to the government, MT. Ballaine claims, as high as s2,000.0 900 per 100 acres.
 This proposal constitutes a radical departure from past practices in the governments disposal of Alaska coal lands. and it comes avowedly to do. battle with another proposition em- bodied in the bill that has been pre- pared, but not introduced. designed to permit the sale or lease of such lands at a rate of S10 per acre. It is said that the general features of the plan have the approval of of ficials high in the administration and of influential members of both houses of congress. including some of the prominent insurgents and Delegate Wickersham of Alaska.
 Do f. tn Beveridge, offers to enter into a bond of S1.O00.0OO with the government for the performance of his part of the agreement he proposes. and he makes the charge that other interests" have now at work in Washington lobby. headed by a former United States senator" in support of the bill re- ferred to above. under whose pro- visions he declares the government would extend an unconditional guar antee to a railroad or railroads which these interests purpose to build in Alaska and would virtually donate to them at s10 per acre one or more tracts of 5000 or more acres each, to be. selected by them.
 Mir. Ballaine' says veins averaging total thickness of twenty feet would yield. according to standard measure ments. more than 100.000.000 tons from 5000 acres, making royalty ot $50. .00O,00 for this comparatively small area He asks the government to provide as condition on it's part to assist in the financing of thou sahd mile railroad
 Mir Ballaine alleges that the Ca nadian interests which owned ma jority of the partially completed rail- road from Seward recently put 1t through foreclosure and reorganiza- tion on a plan that wipes out all American investments in the road, while protecting all the Canadian in vestments He further charges that the lobby. which he describes as ask ing for an outright guarantee of in- terest on bonds and a donation of 5000 acres of coal land as virtual gift. is working in the interest Of these Canadians. but in conjunction with a group of American capitalists who are. he declares. attempting to get control of the katalla coal in an other part of Alasa. Mir. Ballaine says the leasing of these areas on a royalty basis such as he is offering for an area of only 5000 acres would ultimately bring to the government a net revenue exceeding sS,0OO,OOO.Oo0-