The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1910-02-04
MILLIONS in COAL
ROYALTY
.,,TTIE MAN MAKES OF.
Err FOR ALASKA MIN
ING PRIVILEGE
oo,,I Features of His Plan Said
70 Have Approval of High Ad-
ministration Officials Covern-
.,ent Profits Are Figured Into
the Billions.

,b;noton. Jan. 29.-During the
raek new factor appeared to add
Ns a,sitv to the already sufficiently ex-
ln '.ed situation over the Alaska coal
lands. - c..4,. -
largest individual owners of prop
VIC IN Alaska, made proposition in
el'3 .;ne TO the senate committee on ter
H lies offering the government a roy
i ~" If 20 cents ton on coal mined for
sse lease of ), 900 acres of some of the
wy poioest coal lands in Alaska, in the
Italia and Matanuska districts. Such
tonnage ROYALTY would net the gov
-~mant Mr.. Ballaine claims, as high
~ % 600, 900 per hundred acres.
This proposal contemplates a radical
aon.rtnre from past practices in the
rorprnments disposal Of Alaska coal
Isnds and it comes avowedly to do
hottie with another proposition embod-
;od in q bill that has been prepared,
INIT not introduced, designed to permit
.ho cole or lease of such lands at a rate
of $40 an acre.
Il is said the general features of the
nlan have the approval of officials high
n the administration, and of influen-
tial members of both houses of con-
aress including some Of the prominent
insurgent Republicans and of Delegate
Wickersham, of Alaska.
Offers Bond of $1.OOO,OOO
Mr.. Ballaine, in his letter to Senator
Reveridge, chairman of the committee,
offers to enter into a bond of 81 ,O00,-
600 with the government for the per-
formance of his part Of the agreement
he proposes
Mr.. Ballaine asks congress to author
ize the head of a department., to be
designated in the legislation, to enter
into lease with a coal company to be
organized by him, for 5000 acres of
Matanuska coal land under all provi-
sions for regulation and against monop-
olistic control of prices, as stipulated
in the bill recently introduced by Sena-
tor Nelson in conformity with recon-
mendations of Secretary Ballinger's
annual report. This company would
pay the United States and Alaska a
royalty of 50 cents per ton for the coal
as mined
He asks the government to provide,
as condition on its part, that no other
coal land in Alaska shall be leased on
payment of a smaller royalty, and also
to agree that at least half the govern
ment supply of coal shall be obtained
from this company or from a naval
cOaling reserve which the government
may establish and operate in the Mata-
nuska district, shipping the product to
Seward at rates to be fixed by the in
terstate commerce commission over q
railroad, plans for the construction of
which he outlined.
This railroad, approximately 1000
miles in all, is proposed to run from
the Pacific coast at Seward through the
interior valleys to the more strategic
points on navigable rivers.
80 much as may be needed from the
payment of the royalty on the 5000
acres, the Ballaine proposal stipulates,
sfo constitute fund for the guaran-
Tee OF the payment of the interest on
,onas OF the railroad company, which
Mr. ballaine agrees shall be organized
upon lines approved by the head of the
uslartment to be designated by con-
slsss' Should any of the guarantee
iuiia from the royalty on coal be re-
quired in its early stages to pay the
.n'sIest on the bonds of the railroad,
ule lund is to be reimbursed out of sub
'e9aent earnings of the road.
9, MI ballaine quotes the United
Slates geological survey as stating in
D " o VI It's recent reports that there are
aOsVV oOoO, 900 tons of coal in sight
- we known coal areas of Alaska and
mOOaoly at least as much again in re-
e o-ons yet unexplored, and he pointed
ro ~. ,lat the leasing of these areas on q
~. .ei.y oasis such as he was Offering
~ ~ quo acres would ultimately bring
tb. .ne government a net revenue from
' source exceeding So, 600, OOO,O
Ten TuOrrc