The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-10-30
would cancel it's lease of the Great
Northern ore properties.

would cancel it's lease of the Great
Northern ore properties.
A Monopoly in Orc.
1t has been held by legal opinion
that, if the United States Steel corpo-
ration has transgressed the Sherman
law, it was undoubtedly in the mono
poly created by it's control of ore, and
that any plan of reorganization con-
templated would deal with the segre-
CATION of the ore interests from the
manufacture of steel. The corpora
tons leases of ore lands of the Great
Northern railway, Northern Pacific
railway, Northern Pacific railway and
other railroads were negotiated in
1906 on a royalty basis, providing that
they continue until the ore was ex-
hausted unless terminated by January
l, 1915, under the option reserved by
the steel corporation, which had this
option if it gave notice by 1913. BY
the Great Northern lease, the corpo-
ration was required to mine at least
3,75O,OOO tons this year, or to pay for
that much anyway, a total amount of
1861, 800.
BY relinquishing this lease, it is said,
the steel corporation officials believe
they will leave no loophole open for
prosecution unless the Tennessee Coal
and Iron merger of 1907 brings them
within the meaning of the law forbid
ding the formation of maintenance of
a monopoly.
1t was regarded as certain that the
Stanley committee would dig deep in
to the subject of ore production and
into the railway control of ore fields
alleged to have been maintained by
the steel concern. The charge was
made before the committee last sum-
mer that the corporation had practi-
cally absolute control of the iron ore
production of the United States. This,
however, if formerly the fact, was
changed by the cancellation of the
lease it is said. 1t was also charged
with controlling much of the rich Gu
ban ore and much of the Mexican ores.
1t was alleged not only to control the
raw material, but the transportation
lines as well. both rail and water.
which reach the oil fields.
Dominates the Market.
1t was by these means the investi-
eating committee was told last sum-
mer that the corporation maintained
a monopoly of the steel business. of
the United States. The charge has
| never been sustainedsthat the corpora
ton controls enough of the output of
| the American mills to dominate the
steel market, but by owning the ore.
the railroads and the steamship lines.
| 1t was declared the concern was in a
position that could not be assailed by
| competitors.
1t was the chief purpose, therefore,
of the Stanley committee to direct it's
attention to these branches of the
steel business when the hearings are
resumed. How deeply the committee
will probe this phase now. cannot be
aid. because of the relinquishing by
the corporation of it's largest lease.
One thing that is certain to be in
vestigated further, however. is the
manner in which the corporation was
organized, and the historic merger
with the Tennessee Coal and Iron
company. Much testimony has al
ready been given on these points. For
mer President Theodore Roosevelt
told how he permitted the merger,
when he believed it was the only way
to check the spread of the panic OF
1907 John w. Gates. the famous
"bet-a-million" financier, now dead. al
90 testified about the merger: George
w. Perkins. former partner of ]. Pier.
!