New-York tribune., 1910-02-20
RICHES In ALASKA
COAL IN ONE FIELD
WORTH 5000 900 900.
Morgan Guggenheim Plan
.Stated-Copper Mines and
Cunningham Claims.

tories furnished ar attraction in the way
Of developments relative TO Alaska coal
lands which fairly entitled it to rival In
interest the Ballinger- -Pinchot :nvestiga-
zion.
S.e~s,en Hf-ch. manager OF the Gug-
rcnheim- Morgan Alaska syndicate. again
wss .he witness. and for short time he
reeled off figures concerning the value OF
sf.e coal in the Cunningham and other
Alaskan coal and copper mines that were
ouite calculated TO cause the heads OF
the members OF the committee 10 SWIM
Placing the tonnage in the Cunningham
mines 81 se.06e.0oo. he said the coal
could probably be taken ont so as TO
net profit Of S25,0oo,000.
This statement taken IN connection
~.ith the fact that the syndicate had
srreed to pay only S25o,o0o for half OF
the property. aroused much interest.
Mr.. Birch placed the probable output
Of The entire Bering River coal district.
Of zhicn the Cunningham group is a
1zrt. at 5e0.ooo.0o0 tons. with a net
value of 5000 cot, ,0o0 and gross value Of
$500 oeo. .ooa.
Eut there was another portion Of Mr..
Yirch,s testimony which attracted even
more attention than that relating to the
roal mines II had reference to his ef-
forts tc extend the holdings of the
Alaska Coal end Copper Company in the
Bcnsnza group Of copper mines before
{, eas acquired by the Gnggenheim-
Morgan syndicate.
Replying 10 questions from Senator
Frazier Mr. ISirch said that some of the
land now embraced IN that group had
been located by himself through the use
cf lis own name and the name OF other
stockholders OF the company.
Did the company furnish the money
20 pay for the claims" asked Mr.
Frazier.
Mr Birch said il had done Sc, and
mentioned some OF the stockholders
whose names had been so used.
No DUMMY" NAMES USED.
They were mere dummies, were they
not asked the Tennessee Senator.
No. indeed said the witness: they
were interested in the property. ! 10
Gated q claim myself
Was there an understanding with the
company that these claims should be
turned over" Mr.. Frazier asked.
There VAS no such understanding,
was tho reply. u was there as man
ager. and ] went ahead and made the
locations 10 protect the company"
Asked if he had received any COM
rensation for this service. Mr.. Birch re
piled that he had rot. except in so far as
he had received pay for his general work
for The company. The land was de-
sirable and the law WAS complied NTH
in all our proceedings he said
Tcstifying concerning the GugSenheim-
Morgan option on the Cunningham
mines Mr. Birch said that it covered
only half interest, the Cunningham
r,eorle- retaining The remainder The
3, ndicate had agreed. he said, to pay
S-.ph6zbO and to furnish transportation.
The company was TO be capitalized for
s5aeoata He estimated that il would
cost 81 15 = ton 10 mine the coal and
waz Of opinion that it could be marketed
a profit OF % cents ton.
Some of the veins in the Cunningham
group were he said. ten or twelve feet
wide but still were not SO large as the
veins in some of the other mines in the
district He denied emphatically that
the syndicate had used any influence to
have the patents to the mines issued.
interested? Of course We are he
said: but we have not tried 10 influence
the government"
LOBBYING DENIED.
In emphatic terms Mr. Birch denied
that the syndicate had ever employed
lobbyist 10 represent il in Washington,
end he made the denial specific as TO
Governor Eoggatt. Delegate Wickersham
enc Major Richardson. Of the army, who
has been stationed in the territory many
sears IN charge OF road work. He said
that after he left the bench and before
he was elected 10 Congress Judge
Hfckersham had applied 10 be employed
sE attorney By the syndicate, but his
application had not been fayorably
acted on.
Mr. Birch dwelt upon the difficulty Of
mining in Alaska and said that without
q railroad the coal would be utterly
salueless.
RAILROAD ENTERPRISE.
lie also went at length into the syn
e.Cstc's railroad enterprise from Cor
dova Bay and its purchase Of a compel
eng road owned by Post Brothers, OF
london. and also into its acquisition OF
the Bonanza copper mines. In the mat
ter of tie copper mine purchase. Mr..
Flrch said S3,oe0eO0 had been paid for
fne properties and that comparatively
slight DEVELOPMENT had brought SG,pt,-
sgp0 worth Of ore into view
Both Mr. Birch and John y. Steele,
general counsel for the syndicate, said
that when. in 1907, the syndicate had
procured an option on the Cunningham
deposits they were not aware Of the fact
that there was any question of fraud as
10 the title to the claims. So far they
had expended no money on the Gun
ninerafn property. but were ready to
take uD their option as soon as the gov
srnment grants patents TO the claims
In response TO questions from Senator
Beverage. Mr.. Birch said that the gym
6icate had done nothing to influence ac-
zion on the patents and kept no lobbyists
fn Washington. He said also that the
capital Of the syndicate was 100000.
orned half and half by Morgan and the
Guggenheins-
40 mineral lands Of any description
have been acquired IN Alaska by this
syndicate or any other corporation or
Individual under the present adnnistra-
sjon The Ala ska lands were Withdrawn
from entry by President Roosevelt, and
this withdrawal order was continued In
force until q definite policy respecting