The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-06-16
; CALLS OFF DEAL
FOR UTAH IRON
Colorado Fuel & iron Company
Fails to Meet Payment.
OFFERS AFTER PROPERTIES
THREE SETS OF PROSPECTIVE
BUYERS NEGOTIATING.
oTRERS AFTER PROPERTIES

The Colorado Fuel 6, Iron company
has thrown up its principal options or
iron mines near Cedar City. John c.
Cutler. jr.. agent for the estate Of
Bishop Thomas Taylor, received Of
fetal notification yesterday afternoon
that the company would not meet its
payment of S175.OOO due on the claims
Of the estate June "a The reason as
signed is the stringency IN the eastern
money market. The company mas
arge holdings without these claims,
which it does not really need
Although the deal was finally called
of only yesterday afternoon, three diff
ferent combinations of capital are al
ready sparring for the properties,
which are considered of great value
AIen in close touch with the iron situa-
ton say that the failure of the Colo
radO company TO exercise its option
viii be of great advantage 10 the
state. This company intended to ship
the Utah ore to its works in Pueblo,
while if any of the other outfits take
hold, it VIII be with the intention Of
erecting works in this state.
John W. Gates Figuring.
An agent of John w. Gates is already
figuring on the iron Birmingham
(Ala.) steel interests have men now on
the ground for the same purpose. and
there is also a possibility that the Tay-
Tor properties may again be pooled
with those Of Colonel s. 3. Miner. the
Walker Bros, Cullen, MCGarry ana the
A. O. Campbell estate a deal for the
sale of all OF these is now pending.
r The Taylor estate has already re-
m
given on the properties. Of this. $4,000
was paid by the Kimberley Bull syn
oIcate- This syndicate threw up its CD
lions on the Taylor and other iron
properties because of d disagreement
among the promoters and CAPITALISTS
VINO were putting up the money. The
claims are located in the heart of the
Iron mountain deposits, and several
million tons of high grade iron are now
in sight.
1t is believed that If John w. Gates
can secure a foothold in the Utah iron
heIds and can make satisfactory traffic
arrangements he will promote a com
pany to go into the iron and steel BUSH
ness In Utah on an extensive scale. He
has been practically out of the United
states Steel corpora ton for some time
de then turned his attention to the
Colorado Fuel & lion company.
Oriental Trade Possibilities.
His failure in a dramatic struggle
Tor control of that organiza ton is. com
paratively recent history Mr.. Gates
is deeply impressed with the trade pos
stbtitties, especially for iron and steel
IN the Orient, and il is known that he
mas for some time been anxious to con-
troll plant which could compete for
this business. The building Of the San
Pete road VIII open up a direct route
10 the seacOast and ever since the re-
cent announcement Of the sale of the
Oregon Short Line south of Salt Lake
MI Gates has oeeu ''nOsing around"
through agents to get a fo0thoId in the
Utah iron fields. The Taylor estate
has been approached through his rep
resentatives, but no deal has yet been
made
If the Birmingham. Ala. group of
capitalists acquire any Utah iron. il
Is expected that they will put up n
plant An attorney and an expert rep
resenting some of the men who built
up the big steel industry in the south
ern city are now in Iron county study
ing the field and opening negotiations.
Within the last few months, even
weeks. the Utah iron situation has been
completely reversed. For twenty years
and more the holders of iron claims
have spent a vast amount of time and
considerable money hunting up pros
pective buyers. Now the buyers are
taking the Initiative and are hunting
up the owners.