Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-09-11
MADrsoN's MINoRITY REPORT
CLAWS Charges Against BallinEer
should he Sustained.

conclusion are:
That the charges made by L. r. Claws
against Secretary Ballingor should be sus-
tained; that In the matter OF the disposition
Of the Cunningham coal lands Mr.. Ballinger
was not q faithful trustee Of the interests
of the people and did not perform his duty
in such a manner as TO properly protect
such interests
That the charges made by Mr.. Pinchot
should be sustained that MIR. Ballnger's
course in the administration of the Depart
ment of the Interior has been characterized
by a lack of fidelity to the public interests,
that this has been shown in his treatment
Of the Cunningham coal cases. the restora-
ton of the waterpower sites 10 entry with
out intention to rewithdraw and in his ad-
ministration Of the reclamation service, the
latter resulting in unnecessary humiliation
TO the director and tending towards the
disi1tegration of the service. lie has not
shown himself TO be OF that character Of a
friend to the policy Of conservation to our
natural resources that the man should be
who occupies the important post of secrs-
tary OF the interior in our government and
no should not bu retained in that office"
a summary OF Mr.. Madison's findings
follows:
The investigation resolved itself into two
branches, the CLAWS and Pinchot.
CLAWS charged that Mr.. Ballinger had
been an unfaithful trustee of the peoples
interests; that this was more particularly
demonstrated by his conduct toward the
Cunningham coal claims.
Pinchot Charged Bad Faith.
"Pinchot charged that Mr.. Balinger's
course as secretary of the interior had been
characterized by lack OF fidelity to the
Ev,t.
the policy of conservation of natural re-
sources; that this was more particularly
evidenced by his restoration to entry of the
waterpower sites withdrawn by Secretary
Garfield and his conduct toward the
reclamation service and the Alaska coal
fields"
Mr.. Madison then described Alaska as
| the last great natural storehouse of
| natural resources that to a large degree
| belongs to all the people of the United
States; that the secretary of the interior
should guard them against both fraud and
monopoly"
! The Cunningham coal land claims were
then described, Cunningham being referred
to as the promoter of a plan whereby he
and his associates were to prove up the
land and then operate 1t as one mine by
means Of an association or corporation. He
| "NS W haNc -GlB lNn VI SdCn .
stock for his services in prospecting land
and managing the deal"
The findings declare that strong evil
dence was produced that this plan was
adopted and acted upon by the subscribers;
that the Cunningham entries can be can
celed for fraud IL vigorously prosecuted by
the government; that the claims contain
from 5o,0OO0OO to 9O.O0Oo0o tons of coal"
The composition of the Morgan-Guggen
helm Alaska syndicate is given and de-
clared to be IAN association organized to
exploit Alaska"
Entered Into Option Agreement.
The findings OF Mr.. Madison declare that
this syndicate entered into an option agree
ment with the Cunningham claimants in
1907 whereby said claimants organized a
corporation capitalized at 5000, 900, and con-
veyed one-half the stock to ii for $250OOO.
The coal lands of the Cunningham group
were to be decided to said corporation. The
report declares:
The evidence fairly shows that the syndi-
cate aimed at the monopolization of the
Behrtng river coal fields.
In December, 1907, Mr.. Ballinger, as COM
missioner OF the general land office, at the
request OF Ex-Governor Miles G. Moore OF
We1la Walla, WASH, q Cunningham claim
! ant, ordered the Cunningham claims to
! patent. Previous to this order the Guggen-
neim option agreement had been made. The
claims had gone to entry, but patents were
J being delayed. All Alaska coal claims were
under suspicion of being fraudulent. The
order under such circumstances was wrong
full. CLAWS, who had a few days before
been instructed to investigate all Alaska
coal claims and who was given formal
notice OF the order, protested against 1t and
the order was revoked.
J After resigning as commissioner Mr. Bal
: linger acted as advisor and counsel for the
cunningham claimants in their attempt to
Iobtain patents. He prepared a lengthy aft.
davit for Clarence Cunningham and pre-
: scented 1t to the Secretary of the Interior
and commissioner of the general land Of
Ifice in an attempt to explain away the for.
liner affidavit of Cunninghams and the en-.
tries in the Cunningham journal, both OF
! which had been secured by CLAWS and were
most damaging pieces of evidence against
the claimants In possession of the govern.
ment.
Mr.. Ballinger violated no statute in SC
2 doing, but he did violate the moral obi.
! cation which was upon him not to at
! tempt to embarrass the government in ar
: effort to conceal the entries begun while
! he was commissioner and which II was
: his duty to aid in good faith while in office
The act of May Is, 1905. permitted con
! soldation of coal claims to the extent Of
? 1850 acres. where the locations had beer
\ made in good faith. The construction
: placed upon the act by Messrs. Pierce
; bennett Finney and Clements, and seem
! ingly by Mr.. Ballinger would have con
{ doned all agreements to combine in viola
I ton of the act of April 49, 1904, The Pierce
decision had that effect Through the Ell
forts OF CLAWS and Henry M. Hoyt thi,
: decision was reviewed by the attorney gen
3 eral and reversed
4 In the summer OF 1909 II. H. Schwartz
chief of the field of the general land office
endeavored to force CLAWS to report on tn,
cunningham coal claims and go TO tria
or hearing in the proceeding to cancel tn,
entries, without an examination of tn,
claims to ascertain IL the Improvement,
were being made in a manner to indicat,
r that the claims were being operated n
/ common. This was an important circum
stance in the governments case.
After CLAWS was removed from charge o
: the cases James M. Sherman, who was sen
\ to succeed him, reported that he was RICH
!, and the field examination was made prio
u to hearing.
: Discusses PinchOt Charges.
y Mr. Madison discusses the Pincho
charges and the question OF water powe
n sites and their withdrawal by the govern
: ment in order TO prevent monopoly. Fl
= SAYS:
n MIR, Ballinger soon after taking office a
T. secretary, declared such Withdrawals wer
In without authority or law, although Their
" was much authority TO uphold Mr.. Gar
Is fields action and restored the lands to en-
Il try and exposed them to the danger q
l. ultimately, without any restriction as
l. their use, falling into the possession O
Ie those who would monopolize the power.
D At the time of the restoration he did nc
4. intend TO withdraw the lands htt a