Omaha daily bee., 1910-03-26
Matter Passed Up for Time Being, but
Summons May Be Issued.
STEPHEN BIRCH TAKES STAND
Manager Of MOrgan-Guggenheim Syn
dicate Questioned ALI Day.
TELLS THINGS ABOUT ALASKA
Coal Lands Come I'm for Long Discus.
sion, in which Lawyer Tries to
show UD ''tho Power OF
Morgan"

NYASHINGTON, March 25.-The BaIlin-
ger-Pinchot inquiry was resumed today af-
ter an adjournment of practically two
weeks, the sessions of last Friday and Sat
urday having been seriously interfered with
!, by the fight against Speaker Cannon in the
house Of Of representatives
As soon as the committee met this morn
ing Attorney Brandeis representing Louis
H. CLAWS and others sprang a surprise by
requesting that Secretary of the Interior
Ballinger be called as one of his witnesses
Mr. Brandeis stated at first that he
wished to Identify by Mr.. BaliinEer two let
tors that he desired to introduce IN evidence
at this time Questioned further by mem
bers OF the committee as 10 his Intentions
ne admitted that he desired to conduct a
general examination of the accused cabinet
officer.
Counsel for Mr.. Balllnger objected To tbis
ana called forth from Mr Brandeis the re-
. mark that from his letters he had always
supposed Mr.. Ballinger TO be ready to ap-
pear whenever and as often as any one
connected with the inquiry desired.
some members of the committee seemed
TO think that Mr.. Ballinger as the person
most interested in the Inquiry. should have
opportunity to make his statement first
in his own way and not subject himself 70
cross-examination The matter was
passed over temporarily to be decided later
in executive session.
Manager Birch on stand.
me witness stand was occupied during
the entire day by Stephen Birch, managing
director Of the Morgan Guggenheim syndl-
cate IN Alaska 1t was thought at first
Sh@t MI Birchs testimony would be largely
perfunctory in character and would follow
lines ~ tat
before the senate committee on territories.
Members OF the committe, however be-
came deeply interested in the operations OF
me Alaska syndicate, and they piled the
witness with questions from every possible
angle. Much of the questioninlrs was In ]
tended 10 show that the Guggenheirns prao- |
tically control Alaska. Mr.. Birch stoutiy |
denied this.
We'll" he was asked by Representative |
Graham, ''f the Guggenheins got control !
Of coal lands in Alaska, what would there
be leftg'
Mr.. Birch said he did not think this was
fair question to ask him He admitted
that the Guggenheim interests were large;
that they had invested some $i6,O60,OoO al |
ready and had contracted for the ezcpendi-
ture OF other millions There had been no
returns from these investments as yet But
the syndicate had hopes"
As to the Cunningham claims, Mr.. Birch
produced the option which committee of
the claimants had given TO Daniel Guggen-
helm, July 2O 1907. He declared that this
option had been accepted by the Guggen-
helms December z Of that year. The claim
ants, however, had never lived up to its
terms. Cunningham, he said, in January or
February, 1908, had contended that the
Guggenheims themselves had volded the op-
tion by changing their railroad base from
Katalla to Cordova, and that furthermore,
the option was Of no effect because ma
jorty of the claimants had never ratified It.
"The Power of Morgan"
Mr.. Brandeis sought to show that the
Morgans and Guggenhelms, with their
great power and influence in this coun-
wy" must have brought this influencing
RSbver to bear during the last two years
kV an effort to get patents granted to the
Cunningham claimants.
Mr.. Birch declared. however. that he
knew Of no such efforts having been made.
What could we have doneT' he protested
'Ah Mr.. Birch, you can answer that far
better than l." dramatically exclaimed Mr..
Brandeis.
AS to his estimate that the coal in Alaska
was worth so cents a ton and that, there
FORE the Cunningham claims represented
an actual value of SIS. 900. 900. Mr.. Birch de-
clared that II was just as sensible to say
that the ieebergs In Alaska were OF inestl-
mable value. The ieebergs, he said, would
be valuable II they could be brought to
market In this country. So It was with
the COAL but first the transportation facil-
ties had TO be provided.
1t was evident today that membeTs OF
the committee are growing irritable and
that this irrltablllty extends to the counsel !
4essrs. Brandeis and Vertrees made apollo !
8ies at the close OF the session for inn |,
patient remarks.
Immediately after the committee met to- |
day Mr. Brandes said that when Messrs. |
birch and Steele, OF the Morgan -Guggen-
helm syndicate had given their testimony |
be desired 10 call Secretary BaIinger ana |
would like to have him appear today
Mr.. Nertrees was on his feet in an in |
stant
"Mr Ballinger," he said, sis the person |
most Interested in this inquiry. We ought
to be allowed the discretion as TO indicating
when he should appear"
Mr.. Brandeis said he desired to prove by
Secretary Balllnger certain letters that
could be proved best by him.
''Mr. Ballinger has already contemplated
appearing more than once before this COM
mittee" continued Mr.. Brandeis. His let
ters to the committee show that he is
ready TO come at any time"
The committee will decide this matter I'm
executive session." ruled Chairman Nelson.
Protest from BraAdeis.
"Baa desire to be heard" protested Mr..
Bra Als.
"PrtOeed. then" directed Mr.. Nelson.
This inquiry began" resumed the at
torney, with the explicit statement on our
part that we would lay before the com
mittee such facts as seemed vital TO the in
vestigation. We particularly declined TO
make charge. We desired the committee