The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-10-14
HOW HILL sCOOP[D
THE TRUST ON ORE
BEAT BIG CORPORATION AT IT'S
OWN GAME.
Foreseeing What the Trust Managers
Did Not, He Loaded Up on Ore Lands
Which He Leased to the Corporation
at the Strategic Moment.

Since J. j. Hill IS coup in leasing his
Minnesota ore lands to the United
States Steel corporation. there has been
much speculation as to how he happened
to have just what the big trust wanted
and at just the right time.
=, There is an interesting story back of
watched the transactions from the first
say 1t was largely the result of what
was at first accidental circumstances
that the Great Northern came to control
iron lands. But it was "Hill acct
dent lone of the sort of developments
which, tho unforeseen in detail, had been
taken account Of to the extent that
whatever happened would accrue to the
advantage OF the canny magnate of the
Great Northern.
In the early 'so's Mr.. Hill purchased
for his Eastern Minnesota road. the
| Duluth & Winnipeg line and the Duluth.
Mississippi River & Northern. The lat
ter had belonged to the wealthy Sagi-
nav timbering firm Of Wright & Davis,
and included in the purchase were the
| ships 57-21, 1922, So and 1923, and
others. A contract with the Pine Tree
Lumber company of Little Falls was
also taken over, by which Mr.. Hill g
road un dertook to log and deliver to the
| Mississippi river at Swan river about
| 600,0O0,000 feet of standing timber sit
uated on portion of these lands
On portion Of the land holdings was
the great Mahoning mine, then under
lease to Mahoning & shenango Valley
iron operators and very valuable
property, containing an enormous ton
mage. There were also additional lands
that had been somewhat explored, and
on some Of these ore had been found in
more or less quantity.
Hill Saw the Chance.
Mr.. Hill was content with this min
ing investment until the formation Of
the United States Steel corporation in
1901. Then he at once appreciated that
ownership of ore lands to make it the
success its promoters desired, and that
only in practical monopoly Of ore lands
on the Mesaba could it hope to retain
rolling stock especially designed
and adapted for ore traffic,
supremacy in iron and STEEL He had a
large investment in mining lands, rail-
way good for little else, ore shipping
piers at the head Of Lake Superior, roll
piers at the head Of Lake Superior,
and he saw at once that to get
| the greatest value out of this invest
ment he should have additional ore to
haul and reserve supply suitable for
many years. This he set about to Sc
cure.
r Corporation Too Conservative.
' Two facts aided him immensely. The
, first was the unexpected attitude of the
steel corporation as to additional ore
reserves. While the western and sub
l sldlary management recognized fully
4 the strategic position of the Mesaba
8 range and the need for gathering in all
|, ore to be had, the eastern and dominant
interests were not SO convinced. For a
s year the steel corporations policy as to
: ore was a waiting one. That gave Mr..
i Hill his opportunity. At that time the
d Great Northern had large balances
t drawing small interest which could be
e to some extent diverted to the purchase
e of ore in the ground, and that solved
9 any financial question that might have
/ Louis w. Hill was sent to Duluth
9 ostensibly to manage the Eastern Min.
e nesota, but really to gather in the ore
d reserves that it was seen should be Sc
cured. The able assistance of D. NJ
Philbin, together with Mr.. Hill g quick
il grasp Of the entire situation and his
l. willingness to act promptly, were re.
y sponsible for acquiring the ores now
s turned over to the steel corporation.
t The Great Northern took lands by di.
y J
e large tracts on long terms and reason.
b able royalties; it acquired state lands
}, by direct lease and by the purchase q
these leases from individuals; it bought
the stocks Of companies owning large
acreages on the range; it advanced
money to exploring syndicates and steel
makers IN GEaer toe to enable od them to sx
?, haul of their ore; it transferred to 9th
y er steel makers large tracts of it's lands
e at trifing advances over costs, with the
n added proviso that all ore should be
II hauled by the Great Northern; it bought
e full interests or fractional undivided in
terests in important tracts so that il
. might have hand in the final DISPOSE
l. ton Of the ore to be obtained thereon;
II it has, in every possible way. gathered
II in it's ore holdings of late and retained
,. them for some such deal as has now beer
| closed.