The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-02-20
GUGGENHE|M CASE
ATTRACTS INTEREST
Alaska Coal Land Investigation
Rivals the Ballinger-
Pinchot Fight,
TALKING OF MILLIONS
AS If THEY WERE DIMES
Side Lights on How the Kings
of Finance Manipulate Big
Propositions.
BY Associated Press.

BY Associated Press.
WASHINGTON, Feb 19,-Thc sen
ate committee on territories today fur
nishcd an attraction in the way of the
developments relative to Alaska coal
lands, which fairly entitled it to rival
in interest the Bsllingcr Pinchot in
vestigation.
Manager Stephen Birch Of the Gug-
genheinn- Morgan Alaska syndicate
again was the witness.
He recled off figures concerning the
value of coal in the Cunningham and
.hc Alaska coal and copper mines that
were quite calculated to cause heads OF
the members of the committee to swim
Placing the tonnage in the Cunning
ham mines at fifty millions, he said
that the coal could probably be taken
out so as to net profit Of $25. 100000
Wide Margin Left.
This statement, taken in connection
with the fact that the syndicate had
agreed to pay only 5250,000 for. half
of the property, aroused much inter
est.
Mr.. Birch placed the probable out
put of the entire Bering river coal dls-
! trict, of which the Cunningham group
is n part, at five hundred million tons,
with a net value of 5000 900. 900,
But there was another portion OF Mr.
Birch IS testimony which attracted even
more attention than that relating 10
coal mines. 1t had reference TO his Ell
forts to extend the holdings of the
Alaska Coal and Copper company IN the
| Bonanza group Of copper before 1T was
acquired by the Guggenheim- Morgan
! syndicate.
! Responding TO questions from Senator
! Frasier, Mr.. Birch said some of the land
now embraced in that group had been
located by himself through the use OF
! his own name and the name of other
! stockholders of the company.
Company Furnished Cash.
"Did the company furnish the money
to pay for the claims?' asked Ny.
! Frasier.
Mr.. Birch responded that it had done
so and mentioned some, Of the stock
holders whose names had been so used.
.AThey were dummies. were they
mott 80 asked the Tennessee senator.
''No, indeed, - responded the WIT
ness. "they were interested in the prop.
ertv. ] located a claim myself.
''Was there an understanding with
the company that these claims should
De turned over MI IdSiti dSNtNs
.'There was no such understanding.
was the reply.
~ was there as manager. and i went
ahead and made the locations to protect
the company.
Asked il he had received any com
pensation for this service, Mr.. Birch
replied that he had not. except in so far
as he had received pay for his general
work for the company.
''The land was desirable and the
law was complied with III all our pro
ceedings, ne said.
Provisions of Option.
Testifying concerning the Ghggen-
helm Morgan options on the Cunning.
ham mines. Mr.. Birch said it covered
only a half interest. the Cunningham
people retaining the remainder The
syndicate had agreed, he SAID. to pay
$3.50, 900 and to furnish the transporta-
lion. The company was 10 be capita
lized for $5.0OO.O0O. He estimated 1T
would cost Sl.75 per ton TO NINE the
coal and was of the opinion that Il
could be marketed at a profit of 90
cents per ton.
Some veins in the Guggenheim group.
were. he said, ten or twelve feet wide
but still were not so large as VEINS IN
some other mines in the district. He
denied emphatjcally that the syndicate
had used any influence TO have the pat
cpts TO the mines issued.
: Interested? OF course we are. he
said, ''but we have not tried 10 lnflu-
cncc the government.
Denies Any Lobbying.
Mr.. Birch denied that the syndicate
ever had employed II lobbyist TO rep
resent i. in Washington, and he made
the dcuials specific as TO Governor
Horgatt. Delegate Wickersham aud
Major Richardson of the army, who
has been stationed in the territory
MANY wears i'm charge of road work.
He said that. after he left the bench
and before he was elected to congress,
Judge Wickersham had made applira-
tion to he employed as attorney hv the
syndicate. but that his application had
not been favorably acted upon.
Mr.. Wickersham. who was present,
read his letter requesting employment,
In ii he stated merely that, having LETT
the bench, he WINS in position TO rep
resent the company If his service he
desired.
lie stated nc had read thc letter 10
make it plain he had not tried 10 hold
lup the combination.
Delegate W!ckcrsham had demanded
the right TO crosS-cyaminr Mr.. Birch,
but the committee ruled that he could
ask his auestions only through the com
mittce itself After thc explanation
concerning his application for employ
mcu, as counsel, be did not press his
request.