Charges Development Of Alaska's Coal Mines Prevented By Railways
Seattle, Feb. 14.—UP)—Alaska coal is "good coal," J. R. Ummel, purchasing agent for the Alaska railroad, said today, but "it's too far away from
the United States."
"We can't compete with coal producers in this country," he said, in commenting on charges by John E. Ballaine, founder of the city of
Seward. Ballaine asserted United State bankers and railroad owners had influenced government policies against developing Alaska mines,
needed for the success of the Matanuska colony.
"Branch line of the Alaska railroad running to coal fields in the Chicaloon and adjoining Matanuska Talley districts was abandoned, as
Ballaine says," Ummel said. "However, as I recall, there was not enough traffic to justify the line as trucks had taken away the business."
In an open letter today to President Roosevelt, Ballaine named the J. P. Morgan & company and the Harriman-Union Pacific railroad interests as influencing government; policy in order to benefit the Union Pacific line in bringing the Utah coal to Pacific coast cities.
"In Alaska, what coal is mined is taken under difficulties, with the higher costs of production and living," Ummel said. He explained coal could:
be shipped from the states at about the same cost.
Referring to charges by Ballaine that nearly all of 450 settlers who went to the Matanuska valley in a similar colonization "experiment" in
1916 and 1917 had "gone broke," Ummel said that nearly two-thirds off them were still in Alaska.
"They had little when they started and they weren't farmers but most of them are good Alaska residents today," he said.