By 1905, Birch had successfully defended the legal challenges to his property and he began the search for capital to develop the area. On 28 June 1906, he entered into "an amalgamation" with the Daniel Guggenheim and J.P. Morgan & Co., known as the Alaska Syndicate, eventually securing over $30 million. The capital was to be used for constructing a railway, a steamship line, and development of the mines. In Nov. 1906, the Alaska Syndicate bought a 40 percent interest in the Bonanza Mine from the Alaska Copper and Coal Company and a 46.2 percent interest in the railroad plans of John Rosene's Northwestern Commercial Company.