New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-10-06
ORE DEAL COMPLETED.
TERMS ANNOUNCED.
Gent Northern and Steel Common,
and Preferred Go Up.

- s.,e-nl days Il has been definitely known
=. rr.u street that the "ore deal" was a con-
mated fact. but the first official statement
-..srsi-R the transaction issued yesterday
=, s,-Tudee Gary. chairman of the board Of the
I.,,,.s States Steel Corporation. This state
merit was as follows:
..,- long negotiations. contract has been
.--ss for the acquisition on royalty basis or
IS FgilI ore properties $50 called by companies
o,,roued BY the United States Steel Corpora
80 me quantity of ore has not been accu-
-.,siv determined. but IL is large body The
&c. 10 be paid is 81 IS a ton delivered at the
P,ar lake docks. with increase Of "a cents
= Tor each succeeding year. The minimum
,reas 10 he mined is 10000 tons for the year
@ee- and increases by 10000 tons year until
:. -aa~bes $3.50 600 tons, and thereafter IL con-
.,-rss on that basis. II is believed the consum-
.,iC7 Of this agreement will result in great
benefit 70 both parties
rbA Tinted States Steel Corporations ore land
.o,s,nes represent about 100000 tons OF iron
- and recent estimate. made by a trust
---hv authority. placed the IN the Hill ore
--onerties 81 practically the same amount. on
81 basis fixed in the agreement, OF an increase
.. 10000 tons yearly in the minimum amount
- ara ~ he mined by the Steel Corporation until
a.. minimum shall reach S250o00 tons. the
,.-.er amount will be the minimum 10 be mined
a. 1917. and for that year the price to be paid
:. ,be Great Northern Railway Company will be
e. % q ton. against 81 65 IN 1907, the first year
q, which the agreement IS 10 be operative. AS
cunning that the Steel Corporation will extract
,,on, The Great Northern's land only the mini
MINI amount Of ore each year. 49.5Oo.OOO tons
would be mined up 10 and including 1917, for
which 500. S95, 600 would be paid 20 the Great
Northern There would remain approximately
100000 tons OF ore, which IL would take
nearly eighty-hve years TO exhaust at the yearly
rate OF $4,000 tons. But as the price IN
creases in arithmeticaI progression during the
.ntire period from the beginning Of 1907 until
the exhaustion OF the ore beds. IT is a fair as
,urpt.on that the Steel Corporation will from
the outset mine mich more each year than the
stimulated minimum, il following that the
money return 10 the Great Northern will be cor
respondingIy larger than the minimum figures.
TIE Great Northern ore lands, as has fire.
ouenty been printed. are principally situated on
The famous iron ranges Of Minnesota along the
line Of the railway. BY the acquisition OF these
sources Of supply Of the raw material needed
for III. manufacture Of steel the United States
steel CORPORATION is virtually placed beyond the
possiblitv OF having 10 confront the problem or
looking for such supplies in the future.
The. negotiations leading UP to the agreement
1ust concluded have been IN progress for nearly
q year and reports that the lore deal' had been
pu- through have alternated with rUTnoTs OF g
hitch in the deal" at frequent intervals in the
course OF the last few months, the stocks OF the
companies parties 20 the transaction responding
IN their price movement TO these various stories.
Great Northern yesterday made a net advance
NJ 4s. points closing at 1854; Steel commoh
gained Is points and the preferred Us.