The San Francisco call., 1910-03-26
CLAWS LAWYER
SEEKS TO QUIZ
R. A. BALLIkGfR
Springs Surprise by Asking
That Cabinet Official Be
Called to Stand
Congressional Committee Inves=
tigates Guggenlleims' Vast
Northern Holdings

linger-Pinchot inquiry was resumed to-
day after an adjournment of practically
two weeks.
As soon as the committee met this
morning Attorney Brandeis, represent
ing Louis R. CLAWS and others, sprang
a surprise by requesting that Secretary
Ballinger be called as witness Bran
deis said at first that he wished Balm
ger to identify two letters to be
introduced in evidence at this time.
Questioned further by members of the
committee as to his intent he admitted
he desired to conduct a general exam
ination of the accused cabinet official.
BALLTNGER's ATTORNEY OBJECTS
Counsel for Ballinger objected to this
and called forth from Brandeis the re-
mark that from his letters he had
always supposed Ballinger to be ready
to appear whenever and as often as
any one connected with the inquiry
desired.
Some members of the committee
seemed TO think that Ballinger, as the
person most interested in the inquiry.
should have an opportunity to make
his statement first in his own way be-
fore subjecting himself to cross exam
ination. The matter was passed over to
be decided later in executive session.
The witness stand was occupied dur
ing the entire day by Stephen Birch,
managing director OF the Morgan
Guggenheim syndicate i'm Alaska 1t
was thought Mt first that Birch's tes-
timOny would be largely perfunctory
in character and would follow the lines
OF his recent statement made before
the senate committee on territories,
but this was not the case.
WITNESS CLOSELY QUESTIONED
Members of the committee became
deeply interested in the operations of
the Alaska syndicate and they piled
the witness with questions from every
possible angle. Much of the question
ing was intended to show that the Gug-
genheims practically control Alaska.
Birch was asked by Representative
Graham: IF the Guggenheims got con-
troll of the coal lands In Alaska what
would there be left?"
Birch said he did not think this was
a fair question 20 ask him. He admit
ted that the Guggenheim interests were
large, that they had invested some
Sl5, 100000 already and had contracted
for the expenditure of other millions.
There had been no returns from these
investments as yet. But the syndicate
had hopes"
OPTION ON CLAIMS
AS to the Cunningham claims, Birch
produced the option that committee
OF the claimants had given to Daniel
July 90, 1907. He de-
clared this option had been accepted
by the Guggenheims December Z of
that year. The claimants, however,
had never lived up 20 its terms, he
said. Cunningham, he said, in January
or February, 1908, had contended that
the Guggenheims themselves had void
ed the option by changing their rail-
road base from Katalla to Cordova,
and furthermore, the option was of no
effect because 4 majority of the claim
ants had never ratified it.
Brandeis sought to show that the
Morgans and Guggenheims with their
great power and influence in this
must have brought pressure
Co bear during the last two years to get
patents granted the Cunningham claim
ants. Birch declared. however, that he
knew of no such efforts.
What could we have done?" he
protested.
"Ah, Mr.. Birch, you can answer that
far better than t. dramatically ex-
claimed Brandeis.
PROBLEM OF TRANSPORTATION
As to his estimate that coal in
Alaska was worth SO cents a ton and
therefore the Cunningham claims rep
an actual value of SIS, ,G00, 900,
Birch declared it was just as sensible
TO say the icebergs in Alaska were of
inestimable value. The icebergs, he
said would be valuable If they could
be brought TO market in this country.
So il was with the coal, but first the
transportation facilities had TO be pro-
vided-
1t was evident today that members
of the committee are growing ir
ritable. and this irritability extends
to counsel There were frequent clashes
and both Brandeis and Vertrees apol-
ogized at the close of the session for
impatient remarks.
The prosecution" is expected to con-
clude the presentation of its case by
tomorrow night. The concluding days
Of the prosecution" will be taken up
with an explanation by Brandeis and
others of a mass Of documentary evil
dence submitted at one of the sessions
last week. The alleged interest of the
Guggenheim-M Morgan syndicate in the
Cunningham claims also viii occupy
the attention of the committee
DEFENSE PREPARES CASE
John J. Vertrees, counsel for Secre-
tary Bailinger, has been notified to be
ready to proceed with his case next
week. He undoubtedly will preface the
of evidence by a prelim-
mary Statement Of what the defense
expects to prove.
The chief interest in the defense will
rest with Ballinger. The committee
will have to decide just
how many of the attorneys for the
prosecution" are to be allowed the
of cross questioning the cab
met officer. 1t may take the course of
allowing Brandeis to conduct the cross
examination as to Alaskan matters and
Pepper TO handle the water power site
situation.
Immediately after the committee met
Brandeis said that when Birch and
Steele of the Morgan -Guggenheim syn
1icate had given their testimony, he
desired to call Secretary Ballinger, and
would like to have him appear today.
Vertrees was on his feet in an in
slant
Mr. Ballinger.' he said, lis the per-
son most interested in this inquiry. We
ought to be allowed the discretion as TO
Indicating when he should appear
Brandeis said he desired from Sec
retary Ballinger certain letters that
could be proved best by him.
SAYS BALLINGER WILLING
Mr. Ballinger has already contem-