Mr. SMITH, of Arizona. Why would it not be better for the development of the country to limit the amount of coal holdings to a reasonable amount to any one person or corporation and put a prohibition on the further holding by any one person or 1250 corporation? Why would not that prevent a monopoly of these coal lands and work much easier than the proposition laid down in the bill? Mr. BALLINGER. That is substantially getting at the same result. Mr. SMITH, of Arizona. But you would leave the developer so much freer; the holder so much more secure. Mr. BALLINGER. I am perfectly in accord with any theory that will get the results that are sought to prevent monopoly in coal, enforce the development, and give the Government an opportunity to get coal for its navy and for other public purposes at a reasonable price. When that can be accomplished that is all the Government should be looking for, in my estimation. The CHAIRMAN. It is true, however, Mr. Commissioner, that it is almost impossible to follow a title with an entailed condition. Mr. BALLINGER. Yes, sir; I am inclined to think that this payment is much better for us and one which would check and follow the title, for various reasons. First, that it is impossible for us to determine what areas might be required for a single operation in a given case. If we were going to limit the area in a single ownership, we might put it so small that ultimately it would very largely hamper operations. On the other hand, the provisions of section 4, the latter part of section 4, it seems to me, meets that condition by providing that the title shall always be held subject to proceedings that may be instituted under given conditions. Mr. SMITH, of California. You can not prevent individuals from forming corporations and acquiring the lands? Mr. BALLINGER. That has been the difficulty of administering the present law; it has been impossible to uncover the workings of the entrymen. Mr. SMITH, of California. Could you prevent the same members from forming another corporation and taking more land? Mr. BALLINGER. Unquestionably; either directly or indirectly. Mr. SMITH, of California. That would require that no one person should be a stockholder in two corporations, and that would make it necessary to follow up each share of stock, which would be very laborious? Mr. BALLINGER. As to the area involved, I am satisfied, as I stated before, that the Government should grant a liberal area of 4 or even 5 or 6 sections enough to warrant the investment of the amount of capital necessary to make the development. Mr. SMITH, of California. The central idea of this bill is to get a certain amount mined? Mr. BALLINGER. Yes, sir; to make them produce. I have some suggestions for amending the bill in some slight particulars which I will file with the committee. The suggestions referred to are as follows: It is suggested that the bill should be amended by adding to line 4, page 2, after the words "price of," the words "not less than," for the reason that it would appear that valuable deposits of anthracite coal, or lands containing large quantities of semibituminous coal, should not be disposed of at the same rate per acre as the lower grades of bituminous coal and lignites. By the amendment suggested the Department of the Interior will be enabled to classify and dispose of the coal deposits at prices commensurate with their ascertained value. Amendment of line 3, page 4, insert "completion of the entry by final proof and payment" instead of issuance of such patent." Line 3, page 6, should be amended by inserting after the word "other" the word "qualified," so that assignments of existing coal locations may not be made to and title acquired by persons, associations, or corporations who have already exhausted their rights under the existing coal-land laws. Thereupon the committee adjourned. STATEMENT OF DONALD A. MACKENZIE. In response to your request that I make a statement respecting conditions affecting coal locators or entrymen in the district of Alaska, I submit the following: Long before any attempt was made by Congress to extend the coal-land laws to the district of Alaska a number of persons went into what is now known as the Bering coal fields near Controller Bay, and prospected for coal and oil. They discovered some splendid deposits of coal. Each of them located a coal claim of 160 acres and later associated themselves together and combined their claims by putting them into the holdings of the company. They went to work in good faith to open up and develop their properties, and by the time this field was first brought to the attention of the United States Government they had so advanced their operations that they were able to show the representatives of the Geological Survey many veins they had exposed, and the Government, in this way, received the benefit of their efforts and expenditures. Other persons followed them into the coal fields and the land 1251 was soon largely taken up in the same manner by small associations, the individual members of which would locate contiguous tracts. This combination of interests was the result of necessity, as this was a very expensive country to operate in. The expense of getting provisions and tools from the salt water into the interior is almost prohibitive and the operations that have been carried on up to the present time have cost the locators a far greater sum than it cost the early locators in the States. By the act of June 6, 1900, Congress attempted to extend the coal-land laws to the district of Alaska, but the act made no provision for a survey, and as the public surveys have not even yet been extended to Alaska it was of no force or effect. In 1904 another act was passed, which provided for the making of a survey at the expense of the locator, a burden imposed upon the locators in Alaska that is not borne by entrymen in the States. The cost of survey alone is considerable, as the country is very rough and mountainous, and in the region of the coal fields there is considerable rainfall. During the past year there was one month during which it was not possible to prosecute such outdoor work for more than ten days. To send in a surveying party to make a survey of a single claim the cost would be practically prohibitive. It is. therefore, essential that the entrymen combine and let a contract for the survey of a large number of claims and all share proportionately in the expense. It costs as high as $800 to survey some of the claims." After the passage of the act of 1904 the persons holding claims relocated them under the new law. But under the rules and regulations of the Land Office they were not permitted to form companies or corporations before receiving patents, and at the present time some patents are being held up under the law as thus interpreted by the Interior Department. To my knowledge there has been no fraud, nor attempted fraud of any kind discovered. The lands were entered as coal lands, and the highest price the Government receives for public lands will be paid for them. There is no instance where any person has attempted to take up coal land as a homestead or with scrip or in any other manner than under the coal-land law, and the only violation of the law has been a technical one in the forming of companies, and I believe that there are less than forty claims in the Bering field now held by companies in the manner above referred to. Everything has been open and aboveboard. It may be that the locators were somewhat careless in not ascertaining the provisions of the new rules and regulations, but it has been the custom of Alaskans, and I believe this custom has prevailed throughout the West generally, to feel that when a person found anything of value on the public domain he could appropriate it and rest secure that his right thereto would be recognized and respected. There is even more excuse for an Alaskan to make such a mistake, as the country had been for a long time practically without law. The people had been a law unto themselves and had made rules and regulations to govern their mining operations. The idea had grown up and developed that they had a right to do this and that the United States would eventually pass laws recognizing the rights thus initiated. In view of these facts we feel that it would be but a simple act of justice for Congress to condone technical violations of the law due to honest mistake and so revise the law that we can perfect our titles to these lands and proceed in a businesslike way to open up the coal mines so that the people of the Pacific coast and our navy can purchase American coal of as high a grade and for less money than they are now paving for Welsh coal, which is about equal in heat-producing qualities. I have been informed that the Government will pay $1,800,000 for coal on the Pacific coast this year, also that most of this is foreign. This money should go to Alaskans, and we would be in position now to furnish this coal had the laws been so framed as to permit the coal to be mined. The law as it now exists permits every individual who cares to enter coal land to take 160 acres in a single body. One tract of 160 acres in Alaska is practically worthless, and in order to work the properties profitably several claims must be worked together. It has been estimated that it will cost all the way from $200,000 to $500,000 to properly open up and work a coal mine on an economical basis. To justify such an expenditure each location should contain from 6 to 8 sections. To illustrate the impracticability of operating a single claim of 160 acres in this country, let us say that A has a claim on the creek level where he can obtain an outlet to salt water; B has a claim farther up the mountain, and C, D, and E are still farther up. B, C, D, and E are compelled to come over the property of A, so that their claims are absolutely worthless unless they can cooperate with him. The chances are that one tunnel, which may be a very expensive operation, will develop all five claims. It would, of course, be a difficult matter to enact a law that will exactly fit all cases or to prescribe the exact amount that should be included in a mining property. In some instances probably as much as 5,000 acres should be worked as a single claim to produce the most economical results, while in other cases a less amount might be worked profitably. 1252 We feel that some legislation is needed and that it is incumbent on the Government to deal fairly with us and protect the pioneers in the rights they have initiated and are now asserting. We believe it is the desire of the Land Department to do this if the law is so revised as to permit. There have been some technical violations of the rules and regulations of the Land Department by many of these claimants, but such violations were the result of honest mistake, and we trust Congress will take into consideration the difficulties under which they labored and also remember that the miners of the North are many miles from Washington, and that few of them are versed in the law. We think such legislation should be enacted as will permit us to open up these coal claims and have our product on the market for the American fleet now in the Pacific during the year 1908. If Congress will do this I believe it is a safe prediction that it will add 50,000 to the permanent population of Alaska in the next five or six years, for the placing of the coal mines in operation will be an inducement to the development of the copper and other minerals of the interior and to the building of transportation lines. Railroads are very timid about investing capital to build into the coal fields until this all-important question of title to the land is settled. There is plenty of capital ready and willing to carry on this work and several lines have already been projected, but it is doubtful if anything more is done by them except to hold their positions until this matter is adjusted. There is no work that will go forward more rapidly and none that will add so quickly to the increased wealth of the country as the development of the coal of Alaska, and this work will be pushed vigorously if Congress will encourage it by suitable legislation. 3584 DEPARTMENT OF THE INTERIOR, SIR: I transmit herewith a communication from the Commissioner of Education, in which he recommends that certain coal deposits in Alaska be withdrawn from appropriation and set aside for the use of the natives of that district. In compliance with his suggestions I herewith transmit a form of a proposed bill and recommend that it be enacted into law either as an amendment to H. R. No. 18198 or as an independent bill accordingly as it may meet with your approval. Very respectfully, JAMES RUDOLPH GARFIELD, Secretary. R. A. B. G. W. W. The CHAIRMAN COMMITTEE ON PUBLIC LANDS, House of Representatives. Acknowledged date 3/11, 1908; received 3/13, 1908, and referred to G. L. O. 3585 A BILL To preserve certain coal deposits in the district of Alaska and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That all coal or lignite deposits within five miles of the coast of Wainwright Inlet, or within forty miles of Icey Cape, are hereby reserved from location, sale, or other form of disposal, except that any native of Alaska shall have the right to mine and take such coal or lignite for his own use or for the use of any other native or for the use of any person or persons maintaining schools or mission stations free of charge, and under such regulations as may be prescribed by the Secretary of the Interior. 4333 (On side:) File in Neuhausen. Glavis, Mar., 1908. Saturday I shall submit a report in reference to the management of the recent trial. Schwartz, no doubt, will bring it to your personal attention. Neuhausen's services here are certainly a waste of time and money. If the Department of Justice desires his services he should be transferred. If not, he should be given pastures new, for his position here during the past two years has been a sinecure. The evidence and original papers in Neuhausen's office are in a chaotic condition, and while Rittenhouse is friendly to Neuhausen, I believe if you ask him concerning the manner in which the records are kept, he will corroborate the report I shall make. He also took a photograph of Neuhausen's room, showing the original records of the G. L. O. scattered about on the floor in utmost confusion. I feel quite positive that Neuhausen has a great deal of data which properly belongs in my office, and also a great number of original papers belonging to the G. L. O. which the office has repeatedly called for that are no longer required and should be returned. I also feel that some of the original records will never reach the G. L. O. again. The ATTORNEY-GENERAL. DEPARTMENT OF THE INTERIOR, SIR: By attached letter I have directed my field officer to prepare proper lists of the official records of this department now in the possession of Inspector Neuhausen and the office of the United States attorney at Portland, Oreg. These records are in a chaotic condition and the department has no proper lists or account of such papers. It is also desired that investigations in land matters by this department in the State of Oregon be conducted by Chief of Field Division Glavis and his corps of special agents. I will be pleased if you will ask the United States attorney for Oregon, or some other representative of your department in that city, to assist Messrs. Neuhausen and Glavis and carry out the transfer and receipting of the records as outlined in my letter to Inspector Neuhausen. You will observe that none of the records required by your department in the remaining public-land cases set for trial are to be returned to Mr. Glavis, but that it is desired that he have proper receipts therefor. As to such records as you may require in any future trials, they will either be in the possession of Mr. Glavis at Portland and available to you, or will be forwarded to you upon request. Very respectfully, F. L. R. 4334 Mr. T. B. NEUHAUSEN, (Signed) JAMES RUDOLPH GARFIELD, Secretary. MARCH 9, 1908. Portland, Oreg. Special Inspector, Department of the Interior, SIR: The department and the General Land Office have from time to time forwarded large numbers of official files and papers relating to public-land matters in Oregon to various special agents and inspectors; also in some few cases papers were forwarded direct to the United States attorneys for Oregon; in other cases special inspectors and detailed clerks have taken such files direct to the field from the General Land Office. The circumstances under which many of these files and papers were forwarded were such that no intelligent official record thereof was made in the General Land Office. The conditions under which such action was taken no longer exist, and it is the order of the department that all files and papers pertaining to the public-land business be returned to the possession of the General Land Office, or (where still required by the United States attorneys in pending trials) that proper receipts thereof be given such office to the end that its records may be complete as to all official matters within its cognizance under the general laws. To this end Special Inspector Neuhausen and Chief of Field Division Glavis, with the assistance of Stenographer Miller, will at once prepare a triplicate list of all official public-land records and papers now in Oregon and not in the possession of Chief of Field Division Glavis. The list should be in three parts. The first part should show all such records and papers as are not required in the remaining public-land cases now set for trial. Such records will be delivered to Mr. Glavis, and he will give the present custodians proper receipts therefor. The second part will contain such records and papers as may be required by Mr. Neuhausen in the coming trials set. For these Mr. Neuhausen will receipt to Mr. Glavis. The third part will contain such records as the United States attorney's office may require for use in the coming trials set, and will be receipted for to Mr. Glavis by the United States attorney for Oregon or a representative of his office. You will ask the cooperation of the United States attorney or proper representative of his office in the listing and segregation of these papers and records. Of the triplicate list prepared, one will be retained by Mr. Neuhausen, one by Mr. Glavis, and one will be transmitted to the General Land Office to complete its records. Mr. Glavis will also forward to the General Land Office all official records not required by Mr. Neuhausen or the Department of Justice in the trials set, or by Mr. Glavis for further investigation of matters not closed out. Mr. Neuhausen will also deliver to Mr. Glavis any Oregon public-land investigations not included in the above and yet remaining in his possession, and secure proper receipts therefor. Respectfully, JAMES RUDOLPH GARFIELD, Secretary. 4334 Mr. Louis R. GLAVIS, Chief of Field Division, Portland, Oreg. DEPARTMENT OF THE INTERIOR, GENERAL LAND OFFICE, Washington, D. C., March 9, 1908. SIR: Herewith I inclose you copy of letter written by the department to Special Inspector Neuhausen under even date herewith. You will at once consult with Mr. Neuhausen and comply with the directions in said letter in so far as they refer to you, and you will also consult with the United States attorney and secure his aid in listing, receipting, and transferring the records and papers referred to in the attached letter. Respectfully, FRED DENNETT, Commissioner. 840 [The Rainier-Grand Hotel, Wilson & White Co., proprietors, Chas. Perry, manager.] Mr. J. W. DUDLEY, Juneau, Alaska. SEATTLE, March 10, 1908. MY DEAR MR. DUDLEY: I am not certain that I acknowledged receipt of your letter of instructions received some time ago, in connection with our railroad surveys. As suggested by you, I had new plats made covering the tide lands over which we desire to run. These maps also contain profile of railroad to the coal fields with plan of trestle, also terminal and bunker plans. These I have forwarded to the Secretary of War with the request for speedy action. New plats for the railroad are being prepared, as it would have been nearly impossible to change the affidavits as required under your instructions, on the old maps. Mr. Hawkins promised to have them completed before this, but has been laid up for a few days, but I will forward them to you on the next steamer. Will also file our incorporation papers and take all necessary steps to entitle us to do business in Alaska. There does not seem to be very much information as to the new work planned in the north this year, but everyone thinks there will be great things doing in railroad circles in the near future. Thanking you for your kindness in trying to straighten us out in the railroad matter, and hoping to see you soon, I am, Yours, very truly, CLARENCE CUNNINGHAM. 844 [Henry R. Harriman, attorney at law, New York Building.] Hon. JOHN W. DUDLEY, United States Land Office, Juneau, Alaska. SEATTLE, WASH., March 12, 1908. DEAR SIR: Under instructions from Special Agent H. K. Love, I beg to hand you herewith a facsimile copy of the contract for sale of sixteen (16) coal mining locations in Canyon Creek, Kayak Mining Precinct, executed on behalf of assignors by J. W. Hartline, agent, and by myself on behalf of purchasers. Mr. Love did not advise me as to the fee for filing, but I should be pleased to cover same if you would advise me concerning it. Very sincerely, yours, 48412-VOL 1—10—16 H. R. HARRIMAN. |