The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-10-06
Mesaba Lease Gives Corporation Control over
Bulk of the Nations Iron.
Vast Scheme Is Confirmed by the
Officers of the Controll- ~"
ing Company.
From 5000, 900. 900 to 81, $50. .
100000 Involved in the
Immense Project.
Special to The Journal.

Duluth, Mimi, Oct. 6.-The leasing
of all the Great Northern iron ore lands
on the Mesaba range to the United
States Steel corporation removes the
possibility of any more SERIOUS compe-
tition for the steel corporation than
now exists, for it takes out OF the mar.
ket the one large remaining block OF
iron ore in the ground.
Speaking in broad way every ton
of ore on the Mesaba range is now the
property of on or another OF the var!-
property of one or another OF the Var1-
by the corporation. and none OF them
can sell any part Of it's holdings or dis
makers This means no more Important
steel-making concerns than now exist,
unless some other iron region, as favor
ably situated as the Mesaba shall be
opened, and the chances for such
contingency are exceedingly remote.
Vast amount of Ore.
The steel corporation holds many
times the amount of proved ore or
= probably valuable ore lands. than any
other concern, more even in proper
ton to it's product than any. Therefore
serious competition from any new
source is eliminated and also unneces-
sarily severe and lasting. competlt1on
from concerns now IN existence. The
word "lasting' is used in this connec.
ton to cover considerable period OF
years. -
There is no such amount of ore so
far proved on the Hill lands as has
been estimated in the published re-
ports, but the possibilities, even prob
abilities, of vaster tonnage than has
been figured in the most liberal esti.
mates are very good.
Will Last Generations. :,
Shipments of iron ore from the lake
for the last four years have averaged
27OO0,C00 tons, the Steel corporations
proportion of which has been about
16,0OG,o00 tons. This year the total
will be 36,000,O00 tons, of which the
900. Its lake holdings at this rate OF
consump tion will supply it several
generations. But the past has shown
that iron ore consumption in the
United States tripled every decade.
Under this deal the price Of ore in
the ground is So cents a ton gradually
increasing until at the expiration OF
fifty years, it will be $1.2212 a ton
The average rate now paid on the Me
saba range is about 80 cents.
Hill Held High Card.
Mr.. Hill could not have secured sucl
a bargain had his position been one o.
less Commanding independence. Tht
corporation not only desired his ore
-. but desired more strongly that no one
r else should have it. At this price thu
profit in these ores, at present at least
is slight.
Minnesota IS proportion Of the tota
output of the United States will b.
materially increased. 1t is now NOR
than so per cent and the percentag
is growing yearly. ..
The commanding position Of the Me
saba range was never so thoroly appre
ciated as now. Of the 36,O00,000 ton
of ore to be shipped this year 100000
tons will come from Minnesota mines
Next years total may be 100000 O
tons, and Minnesota s share will be I
per cent of that.
Blast Furnaces Soon.
The correctness of recent stories 0
intention of the steel corporation t
erect steelworks in Duluth immediatel
is not confirmed. 1t will do so whe
the time arrives which, in the opinio
Of the management, justifes such
course. The leasing of the Hill land
will have no effect on that period. !
will be governed entirely by the marke
for finished steel, and that time surel
will arrive shortly.
AS one result of this deal the Grea
Northern road will be extended alon
the western Mesaba from Nashwauk
Grand Rapids, a distance of abor
twenty-five miles. It will build a ne
ore pier at Allouez bay to care for til
increased shipments resulting from TT
deal. These will make it's total shi1
ments next year about 100000 tons.