Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-01-26
For Coal Mined in Alas
ka Offered Uncle Sam
By J. {. Ba||aine, Seattle, for a
Lease Of 5000 Acres. =
Influential Members Of Both
Houses Favor the Plan.

Washington, Jan. ga new and
somewhat sensational factor has ap-
peared suddenly to add Intensity 10
the already sufficiently excited situa-
ton over the Alaska coal lands and
on the eve of the beginning of the
Bal,inger- Pinchot investigation. which
largely concerns that question.
John E. Ballaine of Seattle, said to
be the largest individual property
owner in Alaska, today made pro-
position in writing to the Senate COM
rnittee of territories, of which Senator
Beveridge of Indiana is chairman, Of
fering to the government royalty OF
so cents a ton for coal mined, for the
lease CT 5000 acres of some of the
choicest coal lands in Alaska. in the
Katalla and Matanuska districts. SucE
tonnage royalty would net to tne
government, Mr.. Ballaine claimed, as
much as 100000 per 100 acres.
This proposal contemplates a radical
departure from past practices IN the
governments disposal of the Alaska
coal lands and it come avoWedly 10
do battle with another proposltlon'
embodied in a bill which has been pre-
pared but not yet introduced, design
ed to permit the sale or lease of such
lands at rate of SO per acre. 1t Is
said that the general features or the
plan have the approval of officials
high in the administration and of in
nuential members OF both houses oi
Congress, including some OF the proml-
nent Insurgent Republicans and Dele
gate Wickersham of Alaska.
Mr.. Rallaine in his letter to Senator
Reyeridge offers to enter into bond OF
81, 600, 900 with the government for the
performance of his part of the agree
ment he proposes and he makes the
charge that "Other interests" have
now at work in Washington a lobby
Headed by a former United States
senator" in support of the bill re-
ferred to above. and under the pro-
visions of which bill, he declares, the
government would extend an uncondl-
tonal guarantee to a railroad or rail-
roads which those interests purpose to
build in Alaska and would virtually
donate to them at $40 per acre or more
tracts Of 5000 acres eacn to be select
cd by them.
Mr. Ballaine asks Congress to au-
be designated in the legislation, to en-
ter into lease with a coal company
to be organized by him for 5000 acres
of Matanaska coal lands, under all the
provisions for regulation and against
control Of prices as
stipulated in the bill recently intro
duced by Senator Nelson in conformi-
ty with the recommendations of Sec
rotary Ballinger's annual report. This
coal company would pay the United
States and Alaska a royalty of 80 cents
4 ton for the coal as mined. Mr.. Bal
aine stated in his proposal that veins
averaging a total thickness of 20 feet
would yield, according to standard
100 100000 tons from the 5000 acres,
making royalty of $50,000,000 for this
small area.
He asks the government to provide
as d condition on it's part, that no
other coal land in Alaska shall be
leased on payment of a less royalty
and also to agree 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 Matanaska district.
shipping the product to Seaward at
rates to be fixed by the Interstate
Commerce commission over a railroad,
the plans for the construction of which
he outlines.
Mr.. Balaine alleges that the Can
adam interests which owned major
ity of partially completed railroad
from Seward recently put it through
a foreclosure reorganization on q
plan that wiped out all American in
vestments in the road while protect
ng all Canadian investments in it. He
'urther charges that the lobby which
ne describes as asking for an outright
guarantee Of interest on bonds and the
donation of 5000 acres of coal land as a
ritual gift, is working in the interest
If these Canadians, but in conjunction
With group of American capitalists,
Who are, lie declares, attempting by
he same bill to get control of the
<atalla coal in another part of Alaska
Mr.. Rallaine tonight quoted the
United States geological survey as
;tating in one of it's recent reports
hat there are 16.000.000,00O tons of coal
II sight in the known coal areas Of
Alaska and probably at least as much
again lin regions yet unexplored; and
he pointed out that the leading of these
areas on a royalty basis such as he
was Offering for an area of only 5000
acres. would ultimately bring to the
government net revenue from that