Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-02-20
STARTLING FIGURES
Fifty Million Tons of Coal in
Cunningham Mines.
SAYS SYNDICATE MANAGER
Guggenheim Morgan Representative
Furnishes Other Surprises in
His Testimony.

For a few hours yesterday the Senate
committee on territories furnished an at
traction in the way of developments rela-
tive to Alaskan coal lands which fairly
entitled it to rival in interest the Bal
linger-Pincho. investigation.
Manager Stephen Birch Of the Guggen-
r eim-Morgan Alaska syndi- ate again was
the witness. and for a short time he
reeled, off figures concerning the value of
the coal in the Cunningham and other
Alaska mines that were quite calculated
to cause the heads of the members OF
the committee to swim. Placing the
tonnage in the Cunningham mines at fifty
millions, he said that the coal could prob
ably be taken out SO as to net profit OF
sc5. 100000.
This statement, taken In connection
with the fact that the syndicate had
agreed to pay only s2Jo,OO0 for half OF
the property, aroused much interest
Output of the District.
Mr.. Birch placed the probable output
OF the entire Boring river coal district,
Of which the Gum. ngham group is a
part at 500, ZOO, 600 tons, with a net value
of 5000, OOo, 600 and a gross value of $500,
OOO.GOO.
But there was another portion of Mr..
Birch's testimony which attracted even
more atten ion than that relating 10 the
Goa mines. 1t had reference 10 ms 81
forts to extend the holdings or the Alaska
Coal and Copper Company IN tne 6 o,as ac'
gr up OF copper MINIS before 1t was &C
CURED by the heim-Morsan syn
dictate. - c+.,
Responding to questions from senator
Frazier. Mr. Birch said that some OF tne
I tn
been located by himself through the use
of his own name and the names OF othei
stockholders of the company.
Company Furnished Money.
"pid the company furnish the money
to nav for the claims?' asked Mr.. Fra
zier.
Mr.. Birch responded that 1t had done
so, and mentioned some of the STOCK
holders whose names had been so used.
"They were mere dummies. were they
not?" asked the Tennessee senator
mo indeed responded the witness
"They were interested In the property.
located a claim myself"
WAS there an understanding with the
company that these claims should be
turned over?' Mr.. Frazier asked.
was the reply. II was there as manager
and 1 went ahead and made the loca-
lions to protect the company"
Asked If he had received any compen-
sation for this service, Mr.. Birch replied
that he had not, except in SO far as he
the company.
..The land was desirable and the law
was complied with in all our proceed
ings," he said.
Half Interest in Mines.
Testifying concerning the Guggenheinl-
Morgan option on the Cunningham
mines, Mr.. Birch said that it covered
only half interest, the Cunningham peo-
pie retaining the remainder. The syndi-
cate had agreed, he said. to pay $3.50, OOC
and to furnish transportation. The COM
pany was to be capitalized for $o,OOO,OOO
He estimated that 1t would cost <1.15 per
ton to mine the coal, and was of the opin-
ion that 1t could be marketed at profit
Of so cents per ton.
Some of the veins in the Cunningham
group were, he said, ten or twelve feet
wide. but still we're not SO large as the
veins in some of the other mines in the
district. He denied emphaticaliy that
the syndicate had used any influence to
interested? OF course, we are" he
said, but we have not tried to influence
the government"
Did Not Employ Lobbyist.
In emphatic terms Mr.. Birch denied
that the syndicate ever had employed a
lobbyist to represent it, in Washington,
and he made the denial specific as to
Gov. Hoggatt, Delegate Wickersham and
Maj. Richardson of the army. who has
been stationed in the territory many
years in charge of road work. He said
that after he left the bench. and before
he was elected to Congress. Judge Wick
ersham had made application to be e n
ployed as attorney by the syndicate, but
that his application had not been favor
ably acted upon.
Mr.. Wickersham, who was present,
read his letter requesting employment.
In it he stated merely that having left
the bench he was in position to repre-
sent the company If his services should
be desired. He stated that he had read
the letter for the purpose of making it
plain that he had not tried to hold up
the combination.
Delegate Wickersham had demanded
the right to cross-examine Mr.. Birch.
but the committee ruled he could ask his
questions only through the committee it.
self. After the explanations concerning
his application for employment as coun.
sci he did not press his request.
CHARGE OF MISCONDUCT.