The Washington herald., 1922-03-06
Wants u. S. to Build
Mills and Then Sell
Them to Capital.
SAYS BALLINGER =
WAS PROSECUTED
Deprecates Time When
Guggenheims Were
run Out"

Secpetary of Interior Albert b
Fall has announced a new plan for
the development Of Alaska. This
was made known in an interview
which the Secretary gave several
days ago and was briefly outlined
In letter written Saturday to o.
Representative. whose name has
not been disclosed. This letter also
contained charges by Secretary Fall
that he Is being subjected to pub
lie condemnation and private ca
lumny" by propaganda emanating
from the Department of AEricul-
ture. President Harding has been
appealed TO by the Secretary for
protection from what he terms a
vicious and unwarranted attack"
Would Develop Alaska.
The plan. which is said 10 form a
partial basis for the controversy be-
tween the Secretary Of the Interior
and the Secretary OF Agriculture.
an brief. follows: Have Congress
ste aside a revolving fund 10 be
used by the Secretary OF the In
terror in building saw mills, paper
factories, smeiters and railroads fn
Alaska These enterprises will be
operated by the government until
they become self-smashing. at
which time they will be sold 10
private corporations.
Commenting on this plan. Secre-
tary Fall said: III can get the
legislation through Congress. II
propose to have a revolving fund
created with which to develop the
immense resources or Alaska tytS
wells. copper smelters. etc. win be
developed and run by this depart
ment until il is assured they are
strong enough to-i+Nc without gov
ernment aid. At that time they w4u
be sold. or leased for long periods.
to private capital. am perfectly
sincere in this.
Alaska on WsHe.
Capital will not 20 into Alaska
with the prospect Of setting only a
normal return Of its investment.
Under present regulations individ-
ual who have the means Of develop
ing the country are prevented from
placing their money there because
OF red tape and restrictions Il -
therefore necessary to permit an
agency of the government to do the
prospecting"
Secretary Fall asserted that
Alaska has been on the decline fcr
the past decade. The 1899 census,
he declared, shows there are fewS
people in Alaska at this time ths
there were in 1910. Another exo
dus. that OF employees who are
building the government railroad'
from Anchorage to Fairbanks. will
take place as soon as the railway
Is completed. IL is declared. The
1920 ceesus shows 4 loss OF 10000
people for Alaska during the last
ten years.
Sees Only One Remedy.
The only remedy for this. accord
ing to Secretary Fall. is the enact
ment Of special leg. Station suthor-
iZing larger concessions to capital
lists or the development Of natural
resources by the government. Mr.
Fall declares he IS opposed to hsv-
ing the government continue the
conduct Of enterprises longer than
is necessary to assure their perma-
nent operation. Tho DEVELOPMENT
Of the territory should proceed un-
der private exploitation without
competition from the government.
he asserts.
II have long hccn convinced" the
Secretary stated in his letter OF
March 4. that under the 1rasinE
bill. the permit provisions are not
sufficiently liberal 70 justify the
expectation Of immediate develop
ment of the great known oil. coal.
and other nonmetalliferous mineral
deposits Cf Alaska.
Points out Alternatives.
Referring to his plan to use for
mer soldiers in the development Of
natural resources. the Secretary
continues. Il know tho returned
soldier cannot dig a shaft 1000 feet
deep 70 reach potash deposits II
is my firm conviction that in deep
prospecting in Alaska. IL will he
necessary for Congress. either 10
liberalizc the laws to tho end that
private capital may be invited. with
an opportunity TO earn sufficient re-.
wards to Justify taking a gambleE
chance. or. in lieu thereof. profile
a revolving fund to be used by some
department of the government fn
sinking experimental oil wells. and
in prospecting for other mineral de-
posits The result would he TO en-
able US to operate under the second
provision Of thu leasing act. ana
to sell, or ease the lands ia OIL
fields. coal fields. shaIe fields. pot
ash. etc. In other words. either
capital must have the speculative
chance, or the risks Of prospecting
must be borne by the government
BaIlinger Case Recalled.
SECRETARY Fall stated. when inter
viewed. that government restric-
tions in Alaska have been prohibI-
tory ever since the Guggenheims
were run out of Alaska" There is
an instance, he declared, in which
a corporation which had invested
s3o,0o0.00 in the development OF
Alaska. was forced TO cease ITS op-
eratlons simply because OF propa-
ganda carried on by narrow minded
pretudiced people in this country
1t is recalled that the Guggen-
helm case was prosecuted by the
so-called conservaticnists. under
the leadership OF clifford Pinchot.
Justice Brandies and Senator Pen-
per, then practicing attorneys, wers
engaged by Mr.. Pinchot TO investi-
gate the case. in which Il was al
legged that the Guggenbeins ea-
deavored, 10 secure contro;. througa
the Department OF Agriculture or
vast natural resources On Alaska.
Public opinion. U 10 said. broughr
about the resignation Of Secretary