The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1910-01-26
John E. BalIaine Would Pay
Royalty to the United States
Government on all Alaskan
Coal Mined.
WEALTHY LAND OWNER
HITS POWERFUL LOBBY
And Says It Is Backing a Bill
Which Would Dispose of the
Coal Deposits at Rate of
$40 Per Acre.

NdSnluStOil. L. -. JAN -o--UeClNI.
ing on the eve of the opening OF the
Ballinser inquiry that a gigantic con-
spiracy exists TO hand the Alaska coal
lands over to foreign syndicate. John
+. Ballaine of Seattle. said to be
the largest land owner in the northern
territory. created big sensation be-
Ior the senate committee on territOr-
les yesterday. He said that q former
United States senator is heading the
Washington lobby as representative
of Canadian capitalists.
The charges came in the shape OF
a proposition read by Senator Bever-
idge. chairman of the committee. In
which Mr.. Ballaine offered to take
over the coal lands on a royalty basis
which would at once net the govern
ment a revenue of s: 100000 q year.
Rival Plans Clash.
This proposal contemplates a radi-
cal departure from past practices In
the governments disposal OF the Al
aska coal lands, and il comes avow-
edly to do battle with another propo-
sition. embodied in a bill which has
been prepared. but not yet introduced
designed to permit the sale or lease
of such lands at rate Of SO per acre.
II is said that the general features OF
the plan have the approval OF officials
high in the administration and of in
fluential members of both houses OF
congress. including some of the prom
| inent insurgent republicans and Dele
gate Wickersham of Alaska.
Mr. Ballaine in his letter to Senator
lseveridge offers to enter into a bond
of 81. 200. .OcO with the government for
the performance of his part of the
agreement which he proposes. and he
makes the charge that 'other inter
ests" have now at work in Washing
ton a lobby. headed by q former
United States senator" in support %
| the bill referred to above. under whose
provisions. he declares, the govern
ment would extend an unconditional
guarantee to a railroad or railroads
which these interests purpose to build
i'm Alaska. aud would virtually donate
to them at $40 per acre one or more
tracts of 5000 acres each to be select
ed by them.
Sees $50, 1000. 900 Revenue.
that veins averaging a total thickness
of twenty feet would eventually yield,
| according to standard measurements.
a total in excess of 1O0.O0O.OOO tons
from the 5000 acres he seeks. in the
Matanuska district. making a royalty
OF $50O0o, 900 for this comparatively
small area.
| He asks the government to provide
as condition on it's part that no 9TH
or coal land in Alaska shall be leas-
ed on payment of a less royalty.
He also proposes that at least half
of the governments supply OF coal
shall be obtained from this company
or from naval coaling reserve which
the government may establish and it.
self operate in the Matanuska district.
shipping the product to Seward. at
rates to be fixed by the interstate
commerce commission. over a railroad
the plans for the construction OF
which he outlined.
Says Americans Are Robbed.
This railroad approximately 1000
miles in all. is proposed to run from
the Pacific coast at Seward.
So much as may be needed for the
payment of the royalty on the 5000
acres, the Ballaine proposal stipulates.
is to constitute a fund for the guar
antee of the payment Of the interest
On the bonds OF the railroad com
pany.
/ Mr.. Ballaine alleges that the Can
adisn interests which owned a major
ity Of a partially completed railroad
from Seward. recently put it through
a foreclosure reorganization on a plan
that wiped ont all American invest
ments in the road. while protecting
all Canadian investments in it He
further charges that the lobby which
he describes as asking for an out
right guarantee OF interest on bonds
and the donation Of 5000 acres oi
coal land as virtual gift, Is working
in the interest Of these Canadians.
but in conjunction with a group OF
American capitalists who are. he de-
clares attempting by the same bill to
get control of the Katalla coal in an
other part of Alaska.