New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-10-20
s...l Share. Rsvsrs. Of Weak.

sell
Steel Shares Reverse Of Weak.
vail street regarded the cancellation Of
,,a lease as good move on the part OF
s,ha steel corporation. as was shown by
tha action Of the company's shares. the
common making net gain OF l2a points
,1a the preferred Of q. point. The pre-
erred stock Of the Great Northern Rail
,,sv was weak. losing - point on the
3s,sz transactions. although the road IS
no longer directly interested IN the ore
Hrore-ties
The action of the Steel corporation in
making known its intention 10 terminate
tba lease Of the Great Northern ore lands
~ this time. when the agreement still has
,b-se wears 70 run and II il not obliged
-o give notice Of the cancellation Of the
contract until January Z. 1913, was the sub
-s-- NJ much comment in Wall Street
brokers generally were Of the opinion
that coming as II did the announcement
was made solely for the purpose Of pre-
,Arrinp arv action by the government
s-,irs- the corporation under the anti
-ryst law The only basis for such a
sit they said. was the corporations con-
--t-ol ~ ore lands. which the Commission
g. - NJ CORPORATIONS. Herbert Knox Smith,
said in his report. was Of a 'monopo-
r=,ic character and by giving up part
Of these holdings they believed the Steel
corrorstion would not be interfeTed with
by the government.
II was also contended that the lessor had
TIE big end Of the stick. under the terms
r. the agreement, and that from every
point NJ view therefore. the steel Corpora
lion management had adopted wise course
in deciding 20 cancel the lease. Since the
contract was made. IL was pointed out the
Steel Corporation had secured the vast
frorerties OF the Tennessee Coal and Iron
-aerpsnv. so that it was we'll fortified in
ite vav Of raw material for future re-
c,irements. and could easily afford 20 let
me Great Northern ore properties 90.
Brokers View of Lease.
The breaking Of the lease. however, was
looked m bv brokers' as 2 serious blow
for tha G~sa. Northern ore properties. oU-
ir- ~ the fact that its royalties from the
Steel Corporation viii cease IN 1915, and nm
less 90 leases the mines 70 somebody else
CT works them itself 1t will have no in
come from IT'S mines after that date
BE- The cancellation Of the lease does not
'npHbsr 70 he worrying James =. Hill VINO
xctrdiug IN a report received In Wall
Street had irtimated 20 the management
~ The steel Corporation that Il II had IN
mind 70 terminate the agreement he
wished t would do so quickly. as he had
other customers who. he believed. would
Qsy him a better price. NIr. Hill was not
IN the city yesterday, and it was said AT
ms Office that he had changed his plans
about coming here from Washington. where
he has been spending a few days. before
going West
In conservative steel manufacturing cir
c.es the decision OF the Steel Corporal on
N abrogate the Great Northern ore lease
was regarded as a sensible move on us
p5ft An officer Of one OF the leading IN
dependent companies said that in the nrst
Place The steel Corpora ton would get out
OF poor contract. and then. again II
would save the expenditure OF millions OF
oclors a year For example, he added the
ROYALTY in 1918. including the 8o-cent freight
ra'e. would amount % Sl2.g135~' sum
equivalent 10 more than 3ie per cent on
ne common stock and the cost alone OF
assembling the ore in Pittsburgh would be
tose % Ss q ton OF pig iron produced.
What the steel Cooperation would have
had TO nay In the way Of increased royal
tics each year up TO 1916 on the ore taken
from the Great Northern ore properties Is
sst forth in q table IN the current issue or
The Iron Age and suggests possible
reason for the decision Of the corporation
70 arogate the contract. According 10 the
bb't me ROYALTY A ton would increase
Ron = cents IN the current year 70 g u
" s&. in which year the lease would eX-
l.re. IL was expected, by reason Of the OK
Aausuon OF the ore. The article points out
V4t 10 the interim the freight rate on
ore IRON the ore lands 10 Lake Superior
POINTS was reduced 70. say. 90 cents tor
ne royalty would be s. Is. which would be
ROYALTY charge n a trife more than 3 a
"h on steel made from The ore.