The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-01
TRUST SWALLOWS
A WESTERN RIVAL
Gould to Hand Over G., f. & /.
in Return for Freight
Contracts.
J. J. HILLS GREAT
ORE DEAL NEAR END
Great Northern's Ore Properties
in Minnesota Go to Steel
Trust.
journal Special Service.

Journal Special Service.
New York, March According to a /
story freely circulated in Wall street,
Geogre J. Gould has practically decided
to hand over the Colorado Fuel & Iron
company to the United States Steel
corporation.
In consideration, it is said, the steel
trust and the Great Northern railway
will transfer to the Pittsburg extension
: lines of Mr.. Gould's Wabash system
the freight traffic between the Great
Northern s ore properties and the Pitts
burg territory. This will mean that
the ore shipments will be made into
Pittsburg over the Great Northern, the
Chicago, Burlington & Quincy and the
Wabash roads.
This will be a big lift for Gould, as
his Wabash extension has been in more
or less hard luck ever since he over
came the Pennsylvania opposition after
bitter struggle and made his triumph
ant entrance into the smoky city.
It is the Gould way of getting back
at the Pennsylvania for the act Of the
latter in casting out the Western Union
and cutting down the wires.
Removes a Rival.
control of the Colorado Fuel & Iron is
said to have been vested in J. P Nor
): gan & Co., as trustees. Barring some
unforeseen development, the steel trust
will take control of Colorado Fuel u
Iron within the next week or so. 80.
This will remove from the field the
steel trusts strongest strategic rival
and will leave in the entire field but
three rival interests Of consequence
Tennessee Coal & Iron, the Bethlehem
Steel company and the Republic Steel
company. -, - z,,.sz ss5s
~S When the original osgood interests
were forced out Of Colorado Fuel Il
ley-Rockefeller syndicate went in. Then
they fell out among themselves and the
Rockefeller-Gould interests assumed
control. This was in 1908.
Since then the Rockefeller interests
are said to have disposed of large
part of their holdings, leaving the Gould
forces in control. It is said that Rookie
control of the Colorado Fuel to the
steel trust, but that Gould objected.
No Hitch in Hill Deal
An anonymous statement, said, how
ever, to be official, has been issued in
Wall street in regard to the status of
the negotiations between the steel cor
pOratlOn ana the TREAT NOfIneTn TAIL
way for lease Of the latter s ore lands
and concerning the interest of the
Rockefellers and their associates in the
United States Steel corporation. The
statement follows:
''In reference to the report that q
hitch in the Hill ore negotiations haG
; been brought about by the STANDARD
corporation, a high official of the cor
poration says there is no foundation
for the statement.
"The books of the United State:
Steel corporation show that the hold
ings of the. Rockefeller interests ar,
small comparatively, and have no
been increased in several years. H. H
Rogers has at no time attempted tt
dictate the policy of the Steel corpora
ton.
1.-THE negotiations for control of tn
Hill ore lands have been left practical
ly in the hands Of II. C. Prick an
Judge E. H. Cary, chairman of tn
board of directors of the corporation
There is nothing to indicate a hitch
~ heretofore.'
Deal Nearly Closed
The deal by which the immensel
valuable ore properties of James J. Hi
On the Mesaba range are to pass int
the control of the United States Stee
corporation for a period Of thirty year
Is about to be contaminated, accordin
to special from Duluth, which says:
HAltho no official announcement ha
been made, your correspondent is il
formed on authority reliable beyon
question that all Of the principal tern
have been agreed upon and the col
tract drawn. It is estimated that til
Hill interests have ore deposits amour
10 soI> lo1s,
cred at Lake Erie ports, would /
worth $1,125, 100000. The terms of tt
1 contract provide that the Steel corpor
| ton shall take a lease on these prope
r.. ties for thirty years, and shall pay f
4 the first two years 70 cents a ton fl
4 ore mined and 80 cents for the carryin
+ of the ore from the mines to Duluth {
! Mr.. Hills railroads.
1T is further provided that aft
/ two years, the price for ore in tt
s ground shall be increased cents ever
/ two years until at the end of lively
h', years the price shall be 81, and sta
Y at that figure for the remaining eigh
E cen years of the period.
Is Guaranty of Freight.
Ill "Another important provision is tn,
n the Great Northern railroad shall ]
Ii guaranteed freight amounting to II
/. 100000 tons annually during the life
Ne the lease. If mines other than tho
VI in the deal furnish the amount, Il
IF Steel corporation will not be require
III to furnish any, but it must supp
L whatever is lacking of the stipulat,
I tonnage.
"The great advantage of this il
Il portant transaction to the corporate,
N is evident. It insures the corporation
81 tremendous tonnage and prevents t.
Il possibility Of competing companies &c
ting control of these great deposit
as The policy of the officials Of the &C
II poration will be highly commended al
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