New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-01
HILL ORE DEAL TERMS
i s. Steel to Take Ouer Mesdba
Range Properties.

Cleveland Feb. 2s.-It is stated that a deal
.,ro,ying iron ore amounting 10 as great ton
20 as all the ore mined in the Lake Superior
-o,res during the more than fifty years of their
o,s-stion deal by which the immensely valua-
~ ore properties Of James J. Hill on the
,sssha range are 10 pass into the control Of the
I,,red States Steel Corporation for a period Of
,tirv years is about TO be consummated.
s,eolal from Duluth TO The Iron Trade Review"
says:
Although no official announcement has been
,,sSe your correspondent is informed on
sTrhority reliable beyond question that all Of
the principal terms have been agreed upon and
The contract drawn. II is estimated that the
Eal interests have ore deposits amounting to
400 600 600 tons, which delivered at Lake Erie
norts would he worth s1.125, oO0, 600. The terms
Q. the contract provide that the Steel Corpora
ZION shall take a lease on these properties for
thirty years, and shall pay for the first two
wears 20 cents a ton for the mined and SO
cents Tor the carrying Of the ore from the mines
10 Duluth on Mr.. HIS Great Northern Railroad.
II Is further provided that after two years
The price for ore in the ground shall be in
end Of twelve years the price shall be 81. and
sfav al that figure for the remaining eighteen
wears 81 the period. Another important pro-
vision is that the Great Northern Railroad shall
he guaranteed freight amounting 10 loepotp
tons annually during the Hfe Of the lease. IL
mines other than those IN the deal furnish the
amount The Steel Corporation viii not be re-
ouired TO furnish any. but IL must supply what
ever is lacking Of the stipulated tonnage.
The great advantage Of this important trans
action 10 the corporation is evident IT insures
the corporation a tremendous tonnage and pre-
vents the possibility OF competing companies
getting control Of these great deposits The
policy Of the officials Of the corporation VIII be
highly commended and al the same time II is
clear that the transaction VIII be very prof
table 10 the Hill railroad. Last year this rail-
road carried 65o0eD0 tons OF ore, and by the
new arrangement il Will largely increase this
tonnage, al a guaranteed rate which cannot be
SCI aside by any legislation. The income which
would result from the royalty would be fully
sol00g0000 for all the ore, and the SSo00oe0
which viii be earned by carrying the will.
% course, be additional. II cannot. however.
he stated with certainty that the corporation
viii mine all the Hill ore in thirty years.
Il is understood that the question whether
the quality Of the ore Is 10 be guaranteed is
Still undecided.
The hitch in the deal is understood 10 have
been over the question Of a sliding scale price
for the ore. depending its quality Mr. Hill
al first demanded 50 cents a ton as fat price.
but the Steel Corporation wanted TO pay so
cents for ore OF certain grade ard reduce the
price for ore that ran below grade. Mr. Hill
agreed 10 this but stipulated that the price
should be higher for all ore above grade On
This The conference split, the Steel Corpora
ton wanted 80 cents TO be the top price.