Show c UNCLE SAM lOSES IN THE COAL CASES Judge Hanford's Ruling Favors Defendants May Abandon Suits II s SEATTLE April 4 The Tho Tho government lost loot In its Us first battle batlle in tho the effort ef effort of- of fort to punish tho the alleged cd fraudulent Joc lo loc locators lo- lo c c tors of Alaska coal lands Judge Cornelius Cornelius Cor Cor- nelius II H. Hanford in tho the United States district court In overruling the motion to Instruct the tho Jury to acquit Charles J. J F. F Munday Earl E E. E and Archie sustained all the thc vital points contended for by the defendants The ground on which the court re refused re- re fused to grant the thc motion to acquit was not raised b by counsel for tor either cither side In inthe tho the suit but by tho Judge himself It leaves tho the government eo so little room to stand on that it Is said sold to ho practically practically cally assured that tho the prosecution willbe will wili willbe be dropped Tho The lands in question are le the English or Sir Edward group roup They arc are the most valuable coal lands In the world b being richer even than the tha Cunningham claims Estimates of the value range from to a much larger Jarger sum The defendants together to with Algernon Aigernon Stra a brother of Sir Edward Stra- Stra ce cc cey indicted at Tacoma I last t fall tall charged with conspiracy to defraud the government remained in Vancouver Vancouver Van Van- couver B C. C and avoided arrest Trial of the case was begun last Tuesday After ACtor tho the Jury had been completed counsel counsel coun coun- sel eel for tor the defense moved for Instructions instructions to tho the Jury to acquit the defend defend- an ants Tho The argument of tho the attorneys for tor the tho defense defence was almost entirely n on nn Urn thA contention that tho ho 1901 1904 law Jaw applied to Alaska coal claims Instead of ot the tho general general gen hen eral land Jand law JaVo of 1873 while tho the attorneys for tor the government go insisted that tho the prohibitions pro pro- of ot tho the law Jaw of 1873 should b bJ bd 3 read Into tho the law of ot 1904 Inasmuch as the tho law of 1904 in terms permits the assignment of coal claims tho the defendants defendants' counsel argued that It was not illegal for tor the thc defendants to agree to assign their coal claims Furthermore the defendants defendants' counsel contended that If It vere legal Je al for tor a locator to assign his claim It w was wa equally equal equal- I ly legal for tor any person to buy as many of or such assignments a. a as an he could pay for thus removing remo tho the ver very foundation from the Indictment upon which tho the defendants defendants defendants defend defend- ants were vore indicted The courts court's decision today sustained all tho the contentions of tho the def defendants but hut raised a new one ono in tho the following words Indictment Is ValidA Valid I A foreign corporation cannot lawfully acquire or hold bold a coal conJ claim in Alaska eIther cither In Its corporate name nor In the Ule name of any agent or trustee Therefore There Thero- fore tore for tor the reason that tho the Indictment charges a conspiracy to acquire coal claims or proprietary rights to coal claims In Alaska for a a. foreign corporation it must be bo sustained as at a valid indictment and the objection to the tho introduction of evidence must be overruled Tho The court will however Instruct the Jury that to Justify a conviction of the tho defendants under It the tha evidence must provo prove that the tho object of the conspiracy If an any must havo o been to perpetrate a fraud by securing coal claims or proprietary proprietary pro pro- rights in coal claims claIm in Alaska for the tho Pacific Coal and Oil company In discuss discussing In tho the ar arguments the court said Congress Intended to enact a a. practicable practicable cable workable In law and If its second attempt to do so 50 bo be not made futile by misconstruction wo We have such a n law It Is not a law JaW made mado to servo nerve tho purpose purpose pur pur- pose pOlle of monopolists who would keep the coal of Alaska locked up within her mountain walls nor It Il Is based rosed upon any fantastic notion that trusts can bo be annihilated anal anni by giving coal rights to no ono one except the tho man who by personal toll toil may dig the coal and carry carr It to market upon his back or upon his lila head It is the dUt duty of or the court not to misconstrue the law nor stigmatize the congress which enacted it and tho the president who approved ap ap- ap- ap proved cd and nd signed fils It b by Imputing to them a lack Jack of either sen sense or honesty No Appeal From Decision The Tho points raised in the motion to acquit wore the same samo as those made In inthe tho the argument on the demurrer to tho Indictment in the tho ca case e at kane United States Judge too tool took tho the argument under consideration there thero and has not yet rendered a n decision A demurrer may be appealed from but hut Judge Hanford's decision sets seta the tho de defendants de- de fondants In lit the group freo free If the government declines to prosecute on the one ground left for tor there Is no appeal appeal ap ap- ap- ap peal from today's decision The Tho government counsel B. B D. D Townsend Townsend Townsend Town- Town send and S. S R. R Rush say that the ruling Is not final and that tho the other cases will bo be prosecuted anti and the Alaskan coal claims forfeited Tho The estimated value of the land Jand covered b by all an the claims Is la more than one ono billion dollars As soon noon as Judge Hanford had road read his hiM decision counsel for tor tho the defense asked that tha t an exception bo be noted to that tha portion overruling the motion for tor the Instruction of tho the Jury to bring in a n verdict verdict ver ver- dict diet of ot acquittal The defense declared also the indictment did not charge the tho Pacific Coal ConI Oil on company with be being belag be- be lag ing a foreign corporation but merely as asserted as- as that It Il was reputed to bo ho one Governments Government's Exceptions B. B D. D Townsend Townsond assistant to the tho at attorney attorney at- at torney genera also took exceptions to the tho decision to protect his right in case ho hould should decide to attempt to appeal Tho The governments government's exceptions wore were ba based ted tedon on that part of the decision which hold that the tho only chargo In the tho Indictment that could Undo was the tho one ono tul relating to tho tile tor foreign of tho the Pacific Cow Cool 4 Oil ill company |