The Detroit times., 1910-02-18
GUGGENHE|MS
DEFEND COURSE
Say Morgan Guggenheim Syndicate
Has Followed Legal and Fair
Policy In Alaska.

WASHINGTON. Feb. Issuing By
recent charges as to the character
and extent OF their operations IN
Alaska, the Morgan-Guggenheim syn
dictate to-day made public their siiC
OF the case. John NJ Steele, genera
counsel. and Stephen Birch, managing
director of the syndicate. appearel
before tho senate committee on terri
tories and gave what was, they said
full and frank statement Of the In
terests OF j. p. Morgan & Co., and the
Guggenheim brothers In Alaska.
The statements OF Steele and Birch
were I'm substance a. follows:
"All the money spent In the enor
nous development Of the Alaskan 80,
sources has been furnished by the
syndicate, not bond or share OF
stock having been issued TO the pub
lie
1T has proceeded under the genera
laws applicable To Alaska and all its
property and assets except the right
Of way, stations and terminal grounds
have been purchased from the own.
ers
The syndicate has not, and has
never had any interest In any coal
lands in Alaska except the interest IL
obtained under an option given by
what are known as the Cunningham
coal claimants in July, 1907 At the
time this option wa given, Cunning.
ham and his associates had paid the
government for their claims and had
received from the government final
receivers certificates. Under this
state OF facts, Cunningham and els
associates had, under the decisions
OF the supreme court OF the United
States perfect legal right to sell their
claims. An examination was made for
the syndicate by coal expert who
reported very large tracts of lands
containing coal of high grades. In
December, 1907, the options were ex-
ercised.
Nothing further was done under
this option, because under its provis-
ions no money was TO be paid until
patents were issued to the claimants.
The questions arose In the winter OF
1908 regarding the title of the claims
and the patents have not yet been is
sued.
The syndicate was formed in the
spring of 1906 when II purchased 46
per cent OF the stock of the North
western Commercial Co.. which own
ed the entire capital stock of the
Northwestern Steamship Co., and the
Northwestern Fisheries Co. The lat
ter company owned eight canneries In
Alaska with a total pack OF about
900. 900 cases Of salmon Thirty-eight
canneries. In which the syndicate has
no interest, pack about two million
cases OF salmon. The remaining 81
per cent of the stock of the North
western Commercial Co.. was widely
spread among l75 stockholders.
The syndicate has constructed
about I02 miles OF substantial
standard gauge road from Cordova In
Alaska up the Copper river. BY tho
close OF the season of 1910 the road
will be finished TO the Bonanza mines,
making a total Of about 1879 miles.
The road 80 far has cost over 100000
900 and it's completion will require
over SIS. 0O0. 900. The syndicate has no
interest in any other railroad in
Alaska
"In 1906 the syndicate bought 40
per cent interest In the Bonanza
mines and in the spring of 1909 1t
purchased the remaining go per cent
THE syndicate has not now and
never has had, any other interests In
copper properties in Alaska, except
under what has ben called the
'Bratnober option The properties
covered by this option contain a very
large amount of copper ore, but as
says made during the last summer
proved that the ore was OF too low
grade to be commercially developed,
and for that reason the syndicate mas
abandoned the option"