Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-02-21
Alaskan Syndicate Only
Gets s100 for One.
Figures Quoted Cause Sena-
tors toSit Up and Take Notice.
Manager Birch Gives Committee
Some Interesting Statistics.

Washington, Feb. 20.--For few
hours Saturday the Senate committee
on territories furnished an attraction
relative to Alaska coal lands. which
fairly entitled it to rival in interest
the Ralinger- Pinchot investigation.
Manager Stephen Birch of the Gug-
genhelh Morgan Alaska syndicate
reclcd off figures concerning the value
o. the coal in the Alaska coal and cop
Ter mines which caused the heads OF
the members of the committee to
swim.
Placing the tonnage in the Cunning
ham mines at 5o,0Co.000, he said that
the coal could probably be taken out
50 as to net profit OF S25.000.o0o
Thic statement taken in connection
with the fact that the syndicate had
agreed to pay only $250,00C for half Of
the property aroused much interest.
Mr.. Birch placed the probable output
Of the entire Bering river coal dis
trict. of which the Cunningham group
is a part, at 100000 coo tons, with net
value of 5000 900 and i gross value
of 5000 000,0 900.
2ut there was another portion or MI
Rirch's testimony which attracted even
more attention than that relating TO
the coal mines. 1t had reference to his
efforts to extend the holdings OF the
Alaska Coal & Copper Co. in the
Bonanza group of copper mines. before
it was acquired by the Guggenheim-
Morgan syndicate.
Responding to questions from Sen
ator Frazier, Mr.. Birch said that some
l., "a Of
group was located by himself by the
use Of his own name and the names of
other stockholders of the company.
"Did the company furnish the money to
pay for the claims?' asked Mr. Frazier.
Mr.. Birch responded that it did do so,
and mentioned some of the stockholders
whose names were so used.
"They were mere dummies, were they
not?" asked the Tennessee senator.
mo, indeed" responded the Witness
they were interested in the property. I
located a claim myself"
WAS there an understanding with the
company that these claims should be
turned over?" Mr.. Frazier asked.
There was no such understanding"
was the reply. II was there as manager
ana went anedQ ana IHaue the LOCATIONS
to protect the company"
Asked if he had received any compen-
sation for this service, Mr.. Birch replied
that he did not, except insofar as he re-
ceived pay for his general work forI the
company. 1.-The land was desirable and
the law was complied within all our pro-
ceedings,' he said /"
Testifying concerning the Guggenheim-
Morgan options on the Cunningham
mines, Mr.. Birch said that it covered only
a half interest, the Cunningham interests
retaining the remainder. The syndicate
agreed, he said, to pay s250O00 and to fur
nish transportation. The company was
to be capitalized for $5.OO0,0OO. He esti-
mated that it would cost S1.75 per ton to
mine the coal. and was of the opinion
that it could be marketed at a profit of
so cents per ton.
Some of the veins in the Cunningham
group, he said, are 10 or IL feet wide, but
still are not as large as the veins in some
of the other mines in this district. He de-
MED emphatically that the syndicate used
any influence to have the patents to the
mines issued.
Interested? OF course we are" he
said but we have not tried to influence
the government