The Hope pioneer. [volume] (Hope, N.D.) 1882-1964, 1911-12-28
COMING CANCELLATION OF LEASE
BY STEEL TRUST CAUSES
SPECULATION.
DIVIDENDS ARE EXPECTED SOON
Bulk Of s1o,ooo,ooo in Royalties Due
Certificate Holders Dec. 31-Janu- :
airy Statement Will Clarity
the Situation:

New York, Dec. 23.-Ever since 1t
became known that the United States
Steel corporation had decided to give
notice to the trustees of the Great
Northern ore properties of the inten-
ton to cancel the lease of those prop
critics Jan. l, 1915, holders of certifi-
Gates of beneficial interest issued by
the trustees, and Wall Street in gen
eral, have been more puzzled than
ever as to the real value of the certifi-
Gates. They are without fixed par
value and no n outside Of the trus-.
tees and a few other inside interests
have had any data upon which to,
base an estimate of their intrinsic,
value.
Wall Street spectators, as we'll as,
investors, have been disinclined of
late to buy certificates, because of
the foregoing considerations, and
scattered holders have been disposed:
to sell, although in most cases pur-
chases were made on much higher
levels. Not a few of these purchases
were made by investors at 80 or high,
er. Recent prices have shown a loss
of nearly so points on such invest.
ments.
Source of Dividend Money.
It is 10Y asserted that the dividends
thus far paid on certificates have not,
come from moneys received as roy
alties from the Great Western Mining
company, but entirely from leases
other than those of that company. It.
has not been generally known that,
such leases existed. Furthermore, it.
is stated that all moneys received,
from the Great Western Mining com;
pany, under the terms Of the lease;
with the United States Steel corpora.
ton, are held by the trustees of the,
ore certificates, and have been invest
ed in bonds and other securities. BY.
the close of this year the sum that,
will have been received from this
source will amount to $10,5O2, 900. :
The failure of the trustees to de-
clare the usual semi-annuaL dividend
of so cents a share within the last
month or so, has caused comment as
to the probable continuance of pay
ments on certificates. 1t was sug-
( gested that the cancellation of the
lease apparently meant a cessation of
the income. But the sum that the
trustees have on hand intact is large
enough to warrant further payment,
unless the money is being reserved
for a specific purpose.
According to the estimates in 1907
tho In00non fr0r1 thu -,-~
about s3,O00,Ooo a year, and that the
trustees had a surplus of between
$4,000, 900 and 100000 on hand.
James ]. Hill estimated the amount
of ore in the lands at 500, OOO, 900 tons,
but it is declared that the estimates
of the United States Steel D
ton have shown about 357,OOO, 900
tons in half Of the property. A short
time ago the state of Minnesota
threatened to pass a law taxing all of
the ore underground, and this led thd
steel corporation to stop prospecting
for the time being. 1t is understood
to have expended 5000, 900 in de;
veloping the ore properties.
When the lease is terminated. on
Dec. 81, 1914, the steel corporation
will have paid for $4,000, 900 tons Of
ore on which the royalties will az;
gregate $27, 244 900. This sum is equal
to over $1S a share for the Great
Northern ore certificates. of which
there are 100000 without par value,
1t is said to be the intention of tho
trustees to issue an annual Statements
In January in which the position OF
the properties will be made clear to
certificate holders. On the stock ex.
change certificates advanced 2A
points to 1888 IN transactions in $500