Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-01-26
ASKS LEASE ON
COAL LANDS
IN alaska
PROPOSITION TO PAY FIFTY
CENTS A TON ROYALTY
Seattle Man Claims Govern
ment Would Receive as High
as S2,000,000 Per Hundred
Acres if 1t Takes Him Up,

[By Morning Journal scecIai leased Wirel
Washington. Jan. PA new ano
sensational factor appeared today te
add to the intensity of the already suf-
/ ficiently excited situation over tn,
Alaska coal lands, on the eve Of the
beginning of the Ballinger- Pinchot in.
vostigation
John Il. Ballaine 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 Beveridge
Of Indiana is chairman, offering to the
government Il royalty OF fifty cents a
ton on coal mined, for the lease of a
five thousand acres Of some of the
choicest coal land in Alaska, in the
Katalla and Matanuska districts Such
a tonnage royalty would no doust net
to the government he claims, amounts
as high as $2,000,0O0 per hundred
acres
This proposal contcmplates radi-
cal departure from past practices in
the governments disposal Of the Alas
ka coal lands. and it comes avowedly
To do battle with another proposition
embodied in a bill that has been pre-
pared but not yet introduced, design
ed to permit the sale or lease of such
lands at a rate of $40 per acre It is
said that the general feasures of the
plan have the approval by officials
in the administration and by intluen-
tial members Of both houses Of con-
gress.
MI. Ballaine in his letter to senator
Beveiidge offers to enter into a bond
Of $1,000, 900 with the government for
the performance OF his part Of his
agreement
Mr. Balane asks congress to au-
thoriZe the head of department TO be
designated to enter into a lease with
coal company 10 bc organized by him
for 5000 acres Of Matanuska coal
land, under all the provisions for reg
ulation ana against monopolistic con-
troll of prices, as stipulated in the bill
recently introduced by Senator Nelson
in conformity with the recommends
tions of Secretary Ballinger's 5 annual
report. This coal company would pay
the United States and Alaska royalty
of fifty cents ton for the coal as
mined
MIR. Ballaine says that veins averag /
ing a total thickness of twenty feet
would yield, according to standard /
O0,0O0,000 tons from
the five thousand acres, making a \
royalty of $50,000,000 for this COM
small area.
A railroad Approximately one thou
sand miles in all, is proposed to run
rom the Pacific coast at Seward \
through the interior valleys to the
more strategic points on the navigable
'ivers.
So much as may be needed from the
payment Of the royalty on the 5000
lcres, the Ballaine proposal stipulates,
$ to constitute a fund for the guar
lntee of the payment of the interest
N the bonds OF the railroad company,
which, Mr. Ballaine agrees, shall be
organized upon lines approved by the
read of a department to be designated
" congress.
Mr.. Ballaine then quoted the United
Geological survey as stating in one of
Is recent reports that there are six
cen billion tons of coal in sight in the
.nown coal areas of Alaska and probs
bly at least as much again in regions
-ct unexplored. and he pointed out
hat the leasing Of these areas on a
Oyalty basis such as he was offering
or an area Of only 5000 acres. would
Ultimately bring to the government a
Jet revenue from that source exceed
mo- xS mn OOO OOO