The Alaska citizen. (Fairbanks, Alaska) 1910-1917, 1911-11-06
BY John 6. lathrop.

II San NiAS Nfiall' lill +tldShd ~
,atc dreamed OF possessing an EN-
pir,. Of controlling the supply OF
good s'caming coal for Pacific wa
ters: of nus being in position 10
mold the upper hand II war were tC
lteak .ut in Pacific waters OF
,oufrolling industrial development
on the Pacific coast. andl incident
ally. OF creating combination OF
stock and bond operations whereby
If would milk investors. It has al
iead! slouGhcd III on the estate OF
he late Marcus DAILY. of Montana
he burden OF carrying the syndicate
operations in Alaska. If there be
losses. the DAILY estate will sustain
them. II there b" profits the syn
dicatc viii get the lions share
The foregoing statement was made
by citizen OF Alaska who has
been in the territory for years When
! asked him 10 permit his name L
he quoted. he said ii was hard
enough now for business men 10
maintain their positions when they
were known to refuse 10 bow down
TO the syndicates will He prefer.
red not 10 be quoted His state.
ments We're endorsed by many per
sons in the several towns visited.
Three Corporations Planned.
TAX the thee elements in the
situation transportation. coal and
copper The plan OF the syndicate
was to form large corporations. one
70 handle the coal they hoped TO
get in thu Boring Cunningham
fields another to handle the cop
per. another tor he transportation
interests They were TO control all
three Assume they wanted TO de.
press tn. securities OF the coal com
pany Their control of the copper
and transportation, both users of the
coal weuld enable them to manipu-
late the coal securities at their will.
II it weie desired to depress the
copper securities, they could do so
through their control of transporta-
ton and ccal. And the same with
the securities of the transportation
concerns they would control coal
and copper tonnage. and this would
DIV NIharahE
manipulate to the ends they sought.
The Bering cCal is TO be the
great supply for naval uses in the
Pacific. If the syndicate controlled
the high grade coal in Alaska, il
would have the upper hand in the
event OF war in Pacific waters. and
il has been believed for year, tina.
if ever "A great war break out it
will be in the Pacific.
The plans were formed with
elaboration The syndicate was
formed in 1906. yet it was kept Sc
cret until in February, 1908, when
Managing Director Stephen Birch
and Counsel John Steele filed an
.tficial statement with the commit
tee on territories OF the United
States senate. telling for the first
time about the MOI gan-Guggenheim
Alaska Syndicates existence. Up TO
that time it had been known that
Mr. Morgan had. in some manner,
become associated with the Guggen-
helm brothers in their Alaska Oper-
atoms. Ii was not known. how
ever. that the other members join
ed with them in forming the syn
dicate-for instance that Jacob II.
Schitf. OF Kuhn. Loeb & Co, had
come in and that S. II. Graves, pres
ident of the White Pass & Yukon
railway from Skagway, representing
Close Brothers Ct London, England,
was one of the syndicate partici-
pants.
Easy to Milk investors.
'AnalyZe the plans OF the syndi-
cate as | have outlined them. Can,
not you see how easy it would have
been for the syndicate managers TO
milk investors? The trumps would
have been all in the hand held by
The syndicate. the deal theirs, SO
that they would not only govern the
conduct of the game but have the
power to determine after the play
chips which We're used.
Il have been long enough in this
territory to appreciate how over
towering the influence OF the syn
dictate has become. II overshadows
everything. Every business man
GENERATING from ketchikan to Seward
and on to Point Barrow is constantly
under tho power. mere or less, OF
the syndicate's will With only one
independent ship-the Humboldt
plying to the south coast. with the
docks controlled by it, with banking
facilities largely controlled, every
merchant is compelled to ship via
the syndicate lines, excepting when
the Humboldt can carry their freight
1t is obviously impossible for the
Humboldt to affect to great ex
tent the general freight carrying
situation. The fleet OF ships op
Grated against the Humboldt mum
hers about Il Anyone can see how