The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1910-02-19
GUGGENHEIMs
DEFEND COURSE
Say -Guggenheim Syndicate
Has Followed Legal and Fair
Policy In Alaska.

WASHINGTON, Feb. 1s.-Stung b.
recent charges as TO the character
and extent OF their operations IN
Alaska, the an-Guggenheim syn
dictate today made public their size
0f the case. John y. Steele, general
counsel. and Stephen Birch. managing
director OF the syndicate, appeared
before the senate committee on terri
tories ana gave what was, they said.
a full AMI frank statement OF the IN
terests OF J. p. Morgan a. Co, and tie
Guggenhelm brothers in Alaska.
The statements Of Steele and Birch
were in substance a. follows:
"All tho money spent IN the enoV-
nous development bf the Alaskan ~
sources has been furnished by the
syndicate. not "A bond or share oil
stock having been Issued to the pup
lie.
1T has proceeded under the genera
laws applicable 10 Alaska and all It's
property and assets except the righl
OF way, stations and terminal GROUNDS
have been purchased from the own
ers.
THE syndicate has not. and has
never had any interest ia any coal
lands in Alaska except the interest IL
obtained under an option given U!
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 hal
received from the government nhal
receivers certificates. Under TINS
state OF facts. Cunningham and nis
associates had, under the decisions
OF the supreme court oil the United
States perfect Legal right 10 sell their
claims. An examination was made ior
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 provls-
ions no money was 10 be paid until
patents were issued TO the claimants
The questions arose in the winter Oh
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 it purchased 40
western Commercial Co, which own.
ed the entire capital stock OF the
Northwestern Steamship Co, ana me
Northwestern Fisheries Co. Inc lat
ter company owned eight canneries Ill
Alaska with total pack OF about
zoo. 900 cases of salmon. Thirty-eight
canneries. in which the syndicate mas
no interest, pack about two million
cases of salmon. The remaining "a
per cent OF the stock OF the North
western Commercial Co, was widely
spread among IT'S stockholders.
THE syndicate has constructed
about 102 miles OF substantial
standard gauge road from CordoVa IN
Alaska up the Copper river. 10y inc
close OF the season of 1910 the road
will be finished TO the Bonanza mines,
making a total of about 1879 miles.
The road so far has cost over $lO.OUU.-
600 and its completion viii require
over s., 600 600. The syndicate has no
interest in any other railroad IN
Alaska.
I'm 1906 the syndicate bought 40
per cent interest in the BONANZA
mines and in the spring or l9o9
purchased the remaining 90 per cent.
The syndicate has not now ana
never has had. any other interests III
copper properties in Alaska, except
under what has been called the
.Bratnoher 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 10 be commercially developed
and for that reason the syndicate has
abandoned the option.