The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-10-07
AN 'tINFLUENCE FOR EVIL7,,
The Hill Ore Lands, the State Owner
! ship and the ;25-Cent Lease.

{ snip aHu the izb-CenC. Lease.
Much interest is taken among state
officials in the transfer of the J. j.
Hill iron ore interests to the steel trust
IN view Of the fact that these officials
believe the transfer will include a. mum
her Of leases On state lands, for the ore
on which MrssaHill- has to pay but 20
cents royalty ton, but for which I'M
der the new transfer to the United
States Steel corporation, Mr.. Hill and
his associates will receive minimum
royalty of $1.65, delivered at lake ports.
just how much state school land prop
erty is included in Mr. Hills deal, it
IS impossible to ascertain. 1t is known
that Louis w. Hill has number of
mineral leases in his own name, but on
top of this there are believed to be
many state, leases which were practi-
cally the property. of: j. Hill, but
were taken out in the names of other
leaseholders. - 80. /: ..t Is go:
New Law for Future.
The attorney general and the state
auditor will undoubtedly recommend to
the next legislature the passage of a
law materially increasing the price Of
royalty on state school land ore.
Such law cannot revert to the con-
tracts already in existence, including
those Of Mr.. Hill, but it can be made to
apply to every ton Of ore mined on
all future contracts.
The fact that the sale of Mr.. Hill,s
holdings to the steel trust includes the
item of delivery to the head Of the
lakes, fits in exactly with sworn testi-
mony given some time ago to the rail-
road and warehouse commission by
Vicepresident harrington of the Great
Northern, to the effect that in secur-
ing these great interests in northern
Minnesota, Mr., Hill used his personal
credit in the east, and in getting the
iron properties had in mind, as first
aim, plan that when these vast de-
posits were moved, the contract for
such removal should only be allowed on
condition that the Hill lines in northern
Minnesota haul the ore. The pub
lished facts show that in this Mr.. Hill
gained his point, and that probably
long after Mr.. Hills generation, his
northern Minnesota roads will be car.
rying great loads Of iron. ore.
The Iron Ore Traffic.
This iron ore traffic is. no small item.
Ore is carried in northern Minnesota
to the heads Of the lakes for 80 cents
a ton for haul Of 100 to 125 miles.
The big mines now in operation are on
railroads owned by the steel trust. Thus
the steel trust, in paying a high rate,
has only put money from one Of its
treasures into another. But the trust
at the same time, by the prohibitivs
freight rate, prevented independent
mine owners from operating properties.
Mr.. Hill IS undeveloped properties are
on Hill lines, and thus by enjoying
Hills lines will reap a rich return.
This is said to have been the point on
which the steel trust first bucked, =
but in view Of Mr.. Hill 8 extensive
holdings, of the fact that his own lines
touch these properties; and that he has
unlimited means Of his own to develop
mines, it was thought best to get rid
of him as a possible dangerous future
competitor.
Compared with The 80-cent rate is
that charged from the Minnesota ore
docks to lower lake points, 1000 to
"a ,200s miles distant. This water route
lrate Is but 4 cents i tor. The water
ra5e = lsss $ spits IS tho fact that