The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-09-30
GREAT ORE DEAL is CLOSED.
STEEL PROVIDED WITH IRON
FOR THE NEXT FIFTY YEARS.

~..O.r,y That Changes Hands IL substans
,,alIy a Mining Lease-Am0unt % ore
IryoIyed Exceeds Highest Estimate
TERMS 10 ne q known shortly.
No,bina more than tho arrangement Of
.ssir matters which he characterised as
sI.,aiis az arrangement declared n OF
-. most prominent ~ffnanciers In this
=, vasterday, remains to be perfected be-
tho United States Steel Corporation
"Oross into actual possession OF the largest
~ richest iron ore mines In the United
e,s,as with the solitary exception OF the
~. mines already owned by that company.
60 containing all the salient features
.S,ho Transaction have been signed, sealed
M delivered. They ~transfer to h Steel
Coronation not only the ore ~ OF the
nrsst Northern but those OF tho Northern
p,ciac and those held either by j.. W. Long
-sar personally or by him in conjunction
nth the Great Northern.
AN told" declared the anne eminent
arsncier. the amount OF ore transferred
IN the deal exceeds the highest estimate
,hs, has been made Of the capacity Of b
mines involved. 1t is not that the Northern
pacific holdings, amounting TO about SS,OOo,-
ooo tons, or the so-called Longyear proper
,,es. about 1000, 900 tons, have been under
s.timated. The point is that complete and
mos, accurate surveys nave disclosed
yichness in the Great Northern holdings
,bo, was not considered possible at the
time the negotiations for the transfer were
besun. Mr.. Hill has often been quoted
"A estimating these as 100000, 900 tons and
occasionally il has been said that he believed
the mines to contain 500, 900, 700 tons. As q
matter Of fact he insists that there are
enough more than 600, OO0, 900 tons In the
mines to make the total amount trans
tered to the Steel Corporation not far from
zoo 900 tons. II is much more than q
half billion dollar deal
The Steel Corporation principally through
the acquisition from the Rockefellers ssv-
eral years ago Of the Lake Superior Con-
soidated Mines, already holds very rich
Minnesota mines. Some OF the officers Of
The ooporation have estimated the capacity
Of these mines at ESQ, OOO. 900 tons. Such
an estimate il known to be altogether too
hiph. II is certainly too high, @ n Of
the men most prominent in the transaction
said Yesterday, by at least $50 900 900 tons,
and il is Just possible that the mines do
not contain more than $50, 900 900 tons all
told. Yet, the same influential parsonage
pointed out, it is possible to make a very
liberal deduction from the estimates OF the
Sieel Corporation on it's present holdings
and a very liberal deduction from Mr..
Hills estimate Of the richness OF the mines
figuring in the present transaction and
sHI be confronted with statistics lemon
atrating the capacity Of the joint properties
Al As per cent. OF the lake mines. II Ia from
these mines. as far as is known now, that
must come by far the greater part. Of the
ores which are TO provide the steel for this
country in the next half century.
THE transaction thus furnishes the Steel
CORPORATION a supply OF ore for atty years"
esid the eminent a nancier above quoted,
and greatly enhances its power in the
competitive field. For another reason its
position is becoming more dominant. When
Ave years ago it purchased tho Rockefeller
mines Il had to take hem subject to various
leases TO independent concerns. Some OF
those leases expired this ear others are
fast approaching maturity, and the time
"a approaching when the Steel Corporation
will be able to bar its competitors entirely
from the ores In the Lake Superior Con-
soldated tract.
Probably you nave noted this year the
complaints OF many manufacturers re-
garding the scarcity OF pig iron. There
have been no such complaints on the part
Of the Steel Corporation. Nor will there
be such complaints from it for years to
come. Complaints from other producers
will be multiplied
j. W. L~onRyear Of Boston, who partici-
pates in the transaction, is one OF the best
known iron ore men in the United States.
His properties adjoin and are linked with
those Of the Great Northern o. the Mesaba
range in northern Minnesota. In many
Of his mines the Great Northern has an In
terest ranging from one-sixth to a half,
and il was on this account that his properties
went into the transfer, b negotiation
Northern and the Northern Pacific, were
conducted by James j. Hill.
The fnancier. who is authority for the
statement that the transaction Is closed re-
fused TO explain the meaning OF his phrase,
"details Of administration nor would
he disclose the valuation agreed upon Tor
all the ore transferred. The reticence re-
specting this important feature OF the trans
action seems possible OF explanation only
by the reason, given in The SUN yesterday,
that the parties desired to conceal the valu-
alton until the assessors in Minnesota had
completed their work for the year. All the
details, the financier said, will be announced
In a few DAYS.
II is certain, however, that the title to
the lands does not follow the sale Of the
ore. The property changing hands is
substantially a mining lease, running In
all probability for fifty years, and with the
conclusion OF the mining operations the
land reverts TO the Great Northern.
Mr.. Hill is understood to be very well
pleased with the transaction, quite as well
pleased. in fact, as are the officers OF the
Steel Corporation. Higher prices than have
ever been offered by the Steel Corporation
have at many times in the past been offered
by other parties, but there was no other
company financially responsible for q
half billion dollar deal, so hat II the prop
erty was TO be transferred In a lump
only the Steel Corporation could at any
time be regarded as O prospective pur-
chaser. The Transaction, assuring 20 shs
Steel Corporation ar abundant supply Of
ore for fifty years and to the Great Northern
. large annual income for q K period
"a accordingly considered by each party
very beneficial to itself.