The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1903-02-27
HILL MINES
TO BE SOLD.
U. S. Steel Corporation Will Soon
Take Over nill's MeSaba
Properties.
VALUABLE MINES Affected.
Gets 81 per Ton in the Ground aad
tonnage Contract with the
Corporation.
VALUABLE MINES AFFECTED.

The last issue of the Iron Trade
Review contains an article on the
Hill ore holdings on this range
which will be decidedly interesting
to the residents in this section.
The article practically confirms
the reports which have been pub
lished, particularly during the past
two months, of the acquisition of
the Hill ore properties by the Unit
ed States Steel Corporation. The
negotiations to that end have been
a matter of general knowledge, but
it is understood that the transac-
ton has not been consummated. 1t
seems to be taken for granted, how.
ever. that these properties, on some
terms, will pass under the control
of the steel corporation at an early
date. This does not rily in
volve their purchase outright, nor
does it involve the payment of mon
ey at the present time. The terms
talked of have been rather widely
and some of the current
reports in this connection appear to
be quite close to the facts. Itis we'll
understood, for example, that Mr..
Hill is to receive for his ore what
amounts to $1.8O ton at Superior
docks, which would mean 81 ton
for the ore in the ground-the valu-
alton the steel corporation puts on
its own ore, as appears from Presi-
dent Schwab's affidavit in the recent
bond issue litigation.
The prime feature of any deal Mr..
Hill makes will be tonnage for his
Eastern Minnesota road, which in
1902 hauled to the Superior docks
4,18O,568 tons. 1t is understood that
in acquiring control of the Hill ore
properties the steel corporation will
not pay any bonuses, nor will it nee
essarily mine ore every year the
contract is in operation. Mr.. Hill
requires a certain stipulated ore
tonnage for the Eastern Minnesota
road; if mines other than those in
the proposed deal furnish that
amount, the steel corporation will
not be required to furnish any; but
it must furnish whatever is lacking
of the stipulated amount. This
minimum tonnage for the Eastern
Minnesota is raised year by year
until it ultimately reaches 100000
tons. And even then the steel cor
poration need not mine Hill ore, if
from other sources 100000 tons
should be shipped over the Eastern
Minnesota. The importance of the
acquisition OF the Hill properties
by the steel corporation may be in
ferred from the details given below:
The J. J. Hill interests on the Me-
saba range have been in process of
accumulation for the past five
years, during which time consist
ent policy has been pursued, until
these properties have reached an
extent second only to the holdings
of the United States Steel Corpora
ton, and are sometimes estimated
as high as 400,O00O00 to 50OO0O,O0o
tons. These holdings are pretty
we'll concentrated, and while many
of them are leased to opera ting and
independent steel-making concerns,
much of the land and many of the
located ore bodies are still in Mr.
Hills hand for such disposition as
may be desired. Up to few months
ago Mr.. Hill and his companies
were actively negotiating for lands
east OF the central and western part
OF the Mesaba range, going 80 far
as to carry On negotiations for Yer.
million range lands, but at that time
a division of territory was agreed
upon between Hill and the largest
other interest in this district. and he
withdrew and has since confined
himself to that part of the Mesaba
west of township 50, range 10. !.
The bulk of the Hill holdings were
acquired by the purchase, four
years ago, of the Wright & Davis
lands and the Duluth, Mississippi
:! klver vel q Northern railroad, a line
built by Wright & Davis for carry.