The San Francisco call., 1910-02-19
MOrgan-Guggenheim Syndicate
Officials Admit Holding OPP
ton on Coal Lands
CLAWS STORY PARTLY
PROVED, SAY SENATORS
Five Million Dollar Corporation
to Develop Lands Was Aim
of FinanCiers
SENATE COMMITTEE is
TOLD DETAILS OF PLAN
Especial Dispatch to The Call

/
VVTASHINGTON, Feb. 18.-The
w Morgan-Guggerheim syndi-
cate, before the senate com
mittee on territories today, admitted
it had an option on the Cunningham
coal lands in Alaska which have
figured so extensively in the Ballin-
ger-Pinchot investigation
This fact was admitted in a formal
statement submitted to the commit
tee, but through the questioning of
! Senator Beveridge it was also brought
out that the Guggenheims had agreed
to form a $5,OOO.OOO corporation to
/ develop those lands, half interest TO
be held by the Guggenheims and the
other half by Cunningham and his
associates.
Big Sum Promised
The Guggenheims were to pay
S250000 for their share, and in ad-
dition to that sum agreed to loan
100000 if it was needed.
Admission was also made that the
syndicate paid Cunningham S1,3596O
| for travelling and other expenses in
connection with the examination of
the coal properties
During the Ballinger- -Pinchot in
| quiry CLAWS brought out the fact that
this money had been paid to Cunning
ham, but at no time have the Guggen-
helms denied association with the
Cunninghams.
On the contrary, those interests
have been absolutely silent concerning
the entire subject
The admission made by the syn
dicate today. it was said by some
senators, so far as it goes, seemed to
substantiate the charges of Claws
concerning the association of Cum
ningham with the Guggenheim in
| tereStS.
Syndicate's Alaska Deals
| Much was learned concerning the
investments of the syndicate in Alaska
in other directions, which was gone
into in detail, emphasis being laid
upon the fact that the syndicate has
never received anything from the
government in the shape of money,
grants of land or special rights
All its property and assets except
the rights OF way, station and ter
minal grounds of its railroad, it was
testified. have been purchased from
the owners.
The testimony submitted today was
given by John n Steele, counsel of
the Morgan-G -Guggenheim syndicate
and brother of Charles Steele of J.
P. Morgan & Co, and by Stephen
Birch, managing director of the syn
dicate. r. "a
Both of these men will appear be-
fore the committee again tomorrow
morning, and Senator Beveridge told
them he would at that time ask some
very interesting questions.
CLAWS Motive Sought
WASHINGTON. Feb. 1S.-Louis r.
CLAWS motives in seeking Pinchot's
assistance in the Alaska coal lands
claims cases was the object of j. J.
vertrees' long examination of the dis
missed field agent when the congress
sional inquiry into the Bailinger-Pin-
chot feud was resumed today. CLAWS
said he went to Pinchot because he
solutely sincere vertrees said he was
searching out the motives of the wit
ness to discover whether they were
malicious
Vertrees questioned CLAWS at some
length regarding his motive for bring
ing to the attention of the committee
a lot of rules and regulations regard
ing coal land entries in Alaska when
BaIIinger had made but one slight
change in the rules
No Direct Answer
was it to leave an unfavorabIs in
ference in the minds of the commit
tee?' demanded the attorney.
CLAWS would not answer directly.
He said he thought he had given some
testimony favorable to Ballinger.
.sWas the change made by Secre-
tary Ballinger good or bad one?'
asked vertrees.
II considered it a bad one"
The examination had not gone on
much farther when the attorney and
the witness cIashed on the subject of