Norwich bulletin., 1910-01-26
Alaska Coal 1 andS NeWFaCtor Comes
TO ADD INTENSITY TO THE FIX.
 CITED SITUATION.
REVENUE OF Ss, 1000. .ooo. 1000
Would Come to the Government if John 6aIIaine's Proposition is Taken
 Up-Radical Departure Contemplated

Washington, Jan. 25.-A new and somewhat sensational factor has ap- peared suddenly to add intensity to the already sufficiently excited situa- tion over the Alaska coal lands, and on the eve of the beginning of the Ballinger Pinchot investigation, which largely concerns that question.
 A Seattle Mans Proposition.
 John F. Ballaine of Seattle, said to be the largest individual property owner in Alaska, today made a prop osition in writing to the senate com mittee on territories of which Sena- tor Beveridge of Indiana is chairman, offering to the government a royalty the lease of five thousand acres of some of the choicest coal lands in Alaska, in the Katala and Matunska districts. Such tonnage royalty would net the government. MT. Bal laine claimed, as much as $2,000, 900 per hundred acres.
 Radical Departure Contemplated.
 This proposal contemplates a radi- cal departure from past practices in the governments disposal of the Alas ka coal lands, and it comes avowedly to do battle with another proposition, embodied in a bill which has been pre- pared, but not yet introduced, de- signed to permit the sale or lease of such lands at rate of $10 per acre. It is said the general features of the plan have the approval of officials high in the administration and of in huentfal members of both houses of inent shsurgent republicans and Dele gate Wickersham of Alaska
 Offers to Enter Into Bond with the
 Government
 Mir. Ballaine in his letter to Sena- tor Beveridge offers to enter into a bond of s1,000,000 with the govern ment for the performance of his part 1, t.<. makes the charge that "other inter ests" have now at work in Washing ton lobby headed by a. former Unit ed States senator, in support of the provisions of which bill, he declares, the government would extend an un- conditional guarantee to 8 railroad or railroads which these interests pur- nose to build in Alaska, and would virtually donate to them at S10 per acre one or more tracts of five thou sands acres each to be selected by them. MT. Ballaine stated in his pro posaI that veins averaging total thickness of twenty feet would yield, according to standard meas 4renaentss a total in excess of 100,000,0O0 tons from the five thousand acres, making a royalty of $50.00o,00o for this con-l paratively small area.
 He asks the government to provide as a condition on it's part that no oth- CT coal land in Alaska. shall be leased on payment of a less royalty. and also to agree that at least half of the gov ernment's supply of coal shall be ob- tained from this company or from a naval coaling reserve which the gov ernment may establish and itself Op- crate in the Matanasza district. ship ping the product to Seward at rates to be fixed by the interstate commerce commission, over a railroad. the plans for the construction of which he out lines.
 Net Revenue Would Exceed Eight Bill
 lions.
 MT. BalIaine tonight qouted the United States geological survey as stating in one of it's recent reports that there are sixteen billion tons of coal in sight in the known coal areas of Alaska, and probably as least as much again in regions unexplored; and he pointed out that the leasing of these areas on a royalty basis such as he was offering for a known area of only five thousand acres would ulti- mateIy bring to the government a net revenue from that source exceeding S2 mo ono 00O