The San Francisco call., 1910-02-20
GROSS VALUE OF THE
ALASKA COAL LANDS
FIXED AT 5000. 900. 900

WASHINGTON. Feb 19.-The senate
committee on territories today fur
nished an attra actiOn in the way of
developments relative to Alaska coal
lands which fairly entitled IL to rival
in interest the Ballinger- -Pinchot in
vesti cation.
Manage Stephen Birch of the
Guggenheim- Morgan Alaska syndicate
again was the witness. He reeled off
figures concerning the value of coal in
the Cunningham and the Alaska coal
and copper mines that were quite cal
culated TO cause the heads Of the mem
bers Of the committee to swim. Placing
the tonnage in the Cunningham mines
at 50.000.000, he said that the coal
could probably be taken out so as to
net a profit of S25,OO0.00O.
This statement, taken in connection
with the fact that the syndicate had
agreed 10 pay only S250.000 for half
Of the property. aroused much interest.
FIGURES STAGGERING
Birch placed the probable output of
the entire Bering river coal district, of
which the Cunningham group is a part
at 500, goo 600 tons, with net value Of
$500. 100000 and a gross value Of $780,
GOO. 600.
But there was another portion of
Birch's testimony which attracted even
more attention than that relating to
coal mines. 1t had reference to his
efforts to extend the holdings of the
Alaska coal and copper company in the
BONANZA group of copper mines before
it was acquired by the Guggenheim-
Morgan syndicate.
Responding to questions from Sen
ator Frazier, Birch said that some of
the land now embraced in that group
had been located by himself through
the use Of his own name and the
names Of other stock holders Of the
company.
Did the company furnish the money
10 pay for the claims?" asked Senator
Birch responded that it had done
SO, and mentioned some OF the
stock holders. whose names had been
so used.
They were mere dummies, were
they not?" asked the Tennessee SEN
atOr.
DENIES THEY WERE DUMMIES
No. indeed responded the witness.
'They were interested in the proper
ty. / located a claim myself"
Was there an understanding with
the company that these claims should
be turned over?" Senator Frazier
asked.
There was no such understanding"
was the reply. 4 was there as man.
ger and ] went ahead and made the
locations to protect the company"
Asked il he had received any COM
pensation for this service Birch re-
piled that he had not, except in so far
as he had received pay for his general
work for the company.
The land was desirable and the
law was complied with in all our pro-
ceedings,' he said.
Testifying concerning the Guggen-
helm Morgan option on the Cunning
ham mines Birch said that it covered
only q half interest, the Cunningham
people retaining the remainder. The
syndicate had agreed, he said. to nav
$3.50 900 and to furnish transportation.
The company was TO be capitalized
for S5,OOo,0OO. He estimated That II
would cost sl.75 per ton to mine the
coal and was of the opinion that 1T
could be marketed at prof of 20
cents per ton.
WIDE VEINS OF COAL
Some veins in the Cunningham M
group were, he said, 10 or u feet wide.
but still were not so large as veins in
some other mines in the district. He
denied emphatically that the syndicate
had used any influence TO have the pat
ents to the mines issued.
-Interested2 OF course we are" he
said, hut we have not tried to influ-
once the government"
Birch further denied that the syndi-
cate ever employed a lobbyist to rep
resent il in Washington, and &c made
the denial specific as to Governor Hog
gait, Delegate Wickersham and Major
Richardson of the army, who has been
stationed in the territory many years
in charge OF road work. He said that.