The labor world. [volume] (Duluth, Minn.) 1896-current, 1906-10-20
HOW HILL EQUIPPED THE
STEEL TRUST ON ORE
Beat Big Corporation At Its Own
Game-Foresaw What Others
Did Not.
He Loaded Up On Ore Lands,
Which He Leased to Trust
At Right Time

Since J. j. Hills coup in leasing his
Minnesota ore lands to the United
States Steel corporation, there has
happened to have just what the big
trust wanted and at just the right
time.
There is an interesting story back
Of Hills acquisition. Those who have
watched the transactions from the
first say it was largely the result Of
what was at first accidental circum-
stances that the Great Northern came
to control iron lands. But it was a
Hill acc1dent"-one Of the sort Of de-
velopments, which, though 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 ZOOS Mr.. Hill purchased
for his Eastern Minnesota road, the
Duluth & Winnipeg line and the Du-
Missippi River & Northern: The lat
ter had belonged to the wealthy Sag
NAV timbering firm Of Wright & Day.
is, and included in the purchase were
extensive areas Of timber lands in
townships 57-21, 1922, Sc and 1928.
and others. A contract with the Pine
Tree Lumber company Of Little Falls
was also taken over, by which Mr..
Hills road undertook to log and de-
liver to the Mississippi river at Swan
river about 600,O00,000 feet of standing
timber situated on a portion of these
lands. On a portion of the land hold
1ngs was the great Mahoning mine.
then under lease to Mahoning & She
mango Valley iron operators and a.
very valuable property, containing an
enormous tonnage. There were also
aodlt1ona1 lands that had been some
what 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 formal ton Of
the United States Steel corporation In
1901. Then he at once appreciated
mat the corporation must vastly ex-
tend Its ownership Of ore lands to
make 1T the success it's promoters de-
sired, and that only in practical mon
opoly of ore lands on the Mesaba could
1T hope to retain rolling stock espec-
tally designed and adapted for ,ore
traffic, supremacy in iron and steel.
He had large investment In mining
lands, a Railway good for little else,
ore shipping piers at the head of Lake
superior, and he saw at once that to
get the greatest value out Of this in
vestment he should have additional ore
TO haul and reserve supply suitable
for many years. This he set about to
secure.
Corporation Too Conservative.
TWO facts aided him immensely.
The first was the unexpected attitude
OF the steel corporation as to addition
al ore reserves. While the western
and subsidiary management recognized
fully the stragetic position of the Me-
saba range and the need for gather
Ing In all ore to be had, the eastern
and dominant interests were not tn he
so conviced. For year the steel Cor
porat1on's policy as to ore was a. watt
Ing one. That gave Mr.. Hill his OBJ
portunity. At that time the Great
Northern had large balances drawing
small interest which could be to some
extent diverted to the purchase of ore
In the ground, and that solved any fin
anc1al question that might have arisen
with other possible purchasers.
Louis w. Hill was sent to Duluth.
ostensibly to manage the Eastern Min
nesota, but really to gather in the ore
reserves that it was seen should be Sc
cured. The able assistance Of D. M.
Philbin, together with Mr.. Hills quick
grasp of the entire situation and his
willingness to act promptly, were re-
sponsible for acquiring the ores .now
turned over to the steel corporation,
The Great Northern took lands by
direct purchase when necessary; it
leased large tracts on long terms and
reasonable royalties; it acquired state
lands by direct lease and by the pur-
Chase Of these leases from individuals;