The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1905-07-07
MINERAL LEASES
MAY BE YOIDED
State to Attack Validity of Lease
Law in Mabel Evans
Suit.
Steel Trust Counsel Are Alarmed
and Join Forces with
Defendants.

All Minnesota mineral leases and con-
tracts may become void as result OF
the litigation over the Mabel Evans
Hsliver' lease.
Attorney General E. T. Young, who
Is suing to set aside this particular con-
tract, On the ground of fraud, will also
raise the point that the present mineral
lease law is unconstitutional. Oppo-
sition lawyers found a hint of this in
the states complaint. and the mere pos
sibility of setting aside their valuable
state contracts started panic in Steel
trust circles. Kellogg & Severance of
st. Paul, attorneys for the Steel trust
interests, have gone into the case. When
they taxed Attorney General Young with
the intention of raising the constitu-
tionality of the lew, he admitted it, and
the counsel are now preparing for a
great legal battle involving vast inter
ests. .-..
State Would Profit.
The attorney general is convinced
that 1t would be to the advantage Of
the state to knock out the present law,
under which the fortunate. lessees get
ore in any quantity and of any value,
at the flat rate of 25 cents ton. He
will attack the law on the ground that
the constitution requires all state school
and swamp land to be sold at public
sale, while mineral leases and contracts
are granted privately and without COM
petition, unless two or more happen to
time. Section 2 of article Of the state
constitution, relating to sale Of school
lands, provides that no portion Of said
lands shall be sold otherwise than at
public sale.'' Referring to swamp
lands. it says, they 4" shall be appraised
and sold in the same Manner
While mineral leases and contracts
do ~ mt ~ 10 ho
the state will contend that they do
give possession of the most valuable
part Of the land, and, in fact, about
all that is valuable. -
Valuable Contracts Endangered.
If the court agrees with the state Is
contention, it will terminate three val
covering the Grant mine, the Pool mine
and the rich Missabe Mountain mine
With the exception of the Yates mine
and the Frantz mine, to which con-
tracts are held by the Consumers Ore
company, these are the only working
{, Of immense value, and hundreds of
other leases and contracts are held for
future development, which are known
to cover large bodies of ore.
The June reports are not in for the
setive. mines, but during April : ans rs
AC3-oc
: tons, the Grant mine 9.2S5 tons ant
the Missabe Mountain mine 2,774 tons
!. The last named will operate largely
during the latter part Of the season
The Yates mine has cleaned up it it
stockpile this season, shipping. 5000
tons Of state ore, but, will be idle tn
rest Of the year. The Frantz. mine
which is being steadily worked, tool
out 2O,26s tons during April and May
r.; Competition Would Result.
If the law is knocked out by tn
Mabel Evans suit, all these contract
will terminate and the property rever
to the ownership of the state. A nev
law will have to be passed for minera
leases, providing for a public sale o
the mineral rights to every tract o
school and swami land Such a. law, i
is believed, would materially increas
the states revenue.
The present law is entirely satisfacc
tory to the mining interests and it i
not surprising, that they, will fight t
uphold it's validity, while the state
legal department. attacks it: .
The case comes up for trial Aug: 2
at Duluth before Judge Homer D1bel