The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-01-26
WILLING To PAY
FOR COAL MONOPOLY
Captain of Industry of Alaska
Makes Startling Proposition
to Government.
SETS OUT HIS OFFER in
WRITING TO THE SENATE
Makes Charge That "0ther In
terests" Have Lobby at
the Capitol.

WASHINGTON, Jan. 25.-A new and
sensational factor appeared today TO
add intensity to the already sufficiently
excited situation over the Alaska coal
lands, on the eve of the beginning of
the BalIinger-Pinchot investigation
John L. Ballainc of Seattle. said to
be the largest individual property owner
IN Alaska, made proposition in writing
to the senate committee on territories
Of which Senator BcvcrIdge of indiana
is chairman, offering 10 the government
a royalty of 90 cents ton on coal
mined for the 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. Mr., Ballinger claims
as high as S2,000,000 per hundred
acres.
Has Fight to Face.
This proposal contemplatcs Il radical
departure from past practices IN the
government disposal of the Alaska
coal lands, and 1t comes aVowedlyt to do
battle with another proposition en-
bodied in bill that has been prepared,
but not introduced. designed TO permit
the sale or lease Of such lands at rate
Of $40 per acre 1t is said that the
general features of the plan have the
approval of officials hi gh in the ad.
minlstration and of the influential mem
bers of both houses of congress, Includ- !
ing some of the prominent insurgeut
Republicans and Delegate Wickersham
of Alaska.
Offers Bond of Million.
Mr.. Balaine. in his letter to Senator |
Beveridge, offers to enter into bond
Of $1,000 with the government for
of nf bn
agreement he proposes, and he makes |
the charge that "other interests have
now at work In Washington lobby,
' headed by former United States
senator, in support of the bill re-
fcrred to above. under whose provisions.
nc declares, the government would ex
tend unconditional guarantee to rail
road or railroads which these interests
propose TO build in Alaska, and would
virtually donate to them al $40 per
acre one or more tracts of 5000 acres
each TO be selected by them.
Terms as Requested
Mr.. Baliaine asks congress TO an.
thorizc the head of department, to be
designated in the legislation, to enter
into q lease with coal company to be
organized by him for 5000 acres of
visions for regulation and against
monopolistic control Of prices, as stipu-
lated IN the bill recently introduced by
Senator Nelson in conformity with rec
concentrations of Secretary Balliuger s
annual report. This coal company would
pay the United States and Alaska
royalty Of 90 cents ton for the coal as
mined.
Enormous Possibilities.
Mr.. Ballaine says that veins avera siuG
a total thickness OF twenty feet would
yield, according TO STANDARD measure
ments. more than 100, 900 600 tons from
the 1000 acres making a royalty of $50,
600 600 for this comparatively small area.
He asks the government 10 provide. as
condition on its part, that no other
coal land in Alaska shall be leased on
payment OF a smaller royalty. and also
to agree that at least half the govern
ment supply of coal shall be obtained
from this company or from a naval coal
establish and itself operate In the Mata
nuska district. shipping the product to
Seward at rates TO be fixed by tse inter
state commerce commission, over rail
road. plans for the construction OF which
he outlined,
This railroad, Approximately 1000 miles
cihc coast at Seward through the In
terror valleys TO the more strategic
points on navigablc rivers
Plans for Railroad
So much may be needed from the
payment of the royalty on the 5000 acres.
constitute a fund for the guarantee Of
the payment of the interest on bonds of
the railroad company which Mr. Balla inc
agrees, shall be orGa aniZcd upon lines APP
proved by tho head OF q department
designated by congress.
Should any Of the guarantee fund from
the royalty on coal he required in Its
early stages To pay the interest on the
bonds OF the railroads, the fund is 10 he
reimbursed out OF subsequent earnings of
tho road
Mr.. Ballaine alleges that Canadian In
tercsts which owned a majority OF par
TALLY completed railroad from Seward. |
recently put 1t through foreclosure re-
orGanza ton on a plan that wiped out all
American investments In the road. while
protecting all Canadian investments. He
further charges that the lobby. which he
describes as asking for an outright guar
sntee Of interest on bonds and the dona-
tion of 5000 acres OF coal land a vir-
tual gift. Is working In the interest of
thcse Canadians. but In conjunction with
n group of American capitalists, who are, |
he declares. attempting by tho same bill
to get control of the Kstalla coal in an
other part of Alaska.
Mr.. Ballainc tonight quoted the United
States geological survey as stating in one
of its recent reports that there six
teen billion tons of coal In sight In the
known coal areas Of Alaska. and proba bly,
AT least much again in regions vet
uueNplorcd. and he pointed out that the
leasing Of these areas on royalty basis,
such he was offering. for an area OF
only 5000 acres would ultimately bring
10 the government net revenue from
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