Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-02-20
Jf Guggenheim- Morgan Syn
ate Testifies Before Senate
Committee on Territories.
NDUNNINGHAM GROUP VALUABLE
Goal Can Be Mined at Net Profit Of
twenty-five Millions.
SYNDICATE PRICE is SMALL
Quarter Million Was to Be Paid for
Half Interest.
LOCATING COPPER CLAIMS
LOCATING COPPER CLAIMS
Interesting Statement ns to How
Land Occupied by BOnRHHa
Group Was OBJ
tanned.

, WASHINGTON, Feb. 19.-For a few
hours today the senate committees on ter
ritories furnished an attraction in the
way of developments relative to Alaska
coal lands which fairly entitled Il to rival
Nm interest the Ballinger- Pinchot investi-
Igation.
Manager Stephen Birch OF the Guggen-
hem-Morgan syndicate again was the
witness and for a short time he reeled off
figures concerning the value of the coal
In the Cunningham and the Alaska coal
and copper mines that were quite calcu-
lated TO cause the heads of the members
of the committee TO swim. Placing the
tonnage in the Cunningham mines at
$50, 900, 900, he said that the coal could
probably be taken out as to net profit of
i25,OOO.Ooo.
This statement taken in connection with
the fact that the syndicate had agreed to
pay only s25O.00O for half of the prop
erty aroused much interest.
Mr. Birch placed the probable output of
the entire Behring river coal district, of
which the Cunningham group is a part. at
50O, 200, 900 TONS with net value oof
= 5000, 900, 900 and a gross value OF S900,-
100000.
Locating Copper Claims.
b.. there was another portion of Mr..
Bhrch's testimony which attracted even
more attention than that relating to the
coal mines. 1t had Difference his efforts
to extend the holdings OF the Alaska
Coal and Copper company in the Bonanza
group of copper mines, before 1t was ac-
quired by the Guggenheim-M Morgan syndi-
cate. Responding to questions from Sem
ator Frazier, Mr.. Birch said that some of
the land now ebraced in that group had
been located by himself through the use
of his own name and the names Of other
Stockholders of the company.
Ibid the company furnish the money to
pay for the claims ?" asked Mr.. Grazier
Mr.. Birch responded that Il had done SO
and mentioned some Of the stockholders
whose names had been so used.
"They were mere dummies, were they
pot?" asked the Tennessee senator.
mo indeed" responded the witness,
"they were Interested In the property. 1
loSated a claim myself"
Was there an Understanding with the
company that these claims should be
turned over?' Mr. Frazier was asked.
There was no such understanding was
the reply, II was there as manager and
went ahead to make the locations to pro-
tect the company"
Land was Desirable.
Asked IL he had received any compensa-
ton for this service, Mr. Birch/ /replled that
he had not except insofar as he had re-
4 ceived pay for his general work for the
: company.
THE land was desirable and the law was
complied with in all our proceedings" he
said.
Testifying concerning the Guggenhelm-
Morgan options on the Cunningham mines
Mr. Birch said that 1t covered only halt
interest, The Cunningham people retaining
the remainder. The syndicate had agreed
he said. to pay $780, 900 and to furnish trans
portation. The company was to be capt.
tallzed for S5.OOO.OO0. He estimated that II
would cost $175 per ton 10 mine the coa
and was of the opinion that It could be
marketed at a profit OF 90 cents per ton.
Some OF the veins in the Cunningham
Nsroup he said. were ten or twelve feet
thick. but still were not so large as The
veins in some of the other mines I'm the
district. He denied emphatically that the
I syndicate had used any influence to have
> the patents to the mines Issued.
Interested? or course we are" he said
but we have not tried to influence the
government"
6 No lobbyist Employed.
fNIn emphatic terms Mr.. Birch denied thai
the syndicate had ever employed lobbyls
to represent It in Washington and he made
the denial specific as to Governor Hoggart
Delegate Wickersham and Major Richard
son Of the army. who has been stationed
in the territory many years in charge o
road work. He said that after he left tn,
bench and before he was elected to con
gress Judge Wickersham had made applica
tion TO be employed as attorney by th'
syndicate but that as his application hat
not been favoraby acted upon.
Mr., Wickersham, who was present reaS
his letter requesting employment, In 4
he stated merely that having left tn,
bench he was in position to represent IN,
company II his services should be desired
He stated That he had read the letter fol
the purpose OF making 1t plain that he haC
not tried to hold up the combination.
Delegate Wickersham had demanded tn
right to oross-eXamlne Mr.. Birch. but tn,
committee held that he could ask hi
questions only through the committee II
self. After the explanations concerning hi
application for employment he did no
press his request