The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1911-07-05

Great BULK or ms RaW MatcTlai
Located in the Northwest.
Washington, July 5.-A special to
the Chicago Tribune says:
"In the attack which the depart
ment of justice is expected to make
shortly upon the United States Steel
corporation particular attention will
he made TO the iron Gre monopoly
which that combination has effected.
"In the comprehensive report on
the steel industry made few days
ago to President Taft by Commission
er of Corporations Herbert Knox
Smith, the statement was made that,
not only on account of its great hold
ings of ore, but also because of the
peculiar advantages enjoyed in the
transportation of the ore, the United
States Steel corporation occupies an
extremely commanding position in the
iron and steel trade.
Indeed, the report concludes, in
sofar as the steel corporations posi-
ton in the entire iron and steel indus
try is of monopolistic character, 1t
is chiefly through its control of ore
holdings and the transportation OF
ore
Consequently, it is to these points
that the government must direct itself
in order to assure the destruction of
the steel monopoly. The corporations
ore holdings are conservatively placed
at more than 2,500,000,000 tons. These
cover what are now regarded as COM
merciaily available ores, and exceeded
those ST all other iron and steel inter
ests combined.
''Th2 great bulk of the holdings is
in the Lake Superior region, which
substantially forms the basis of the
steel production of the country at the
present time The steel corporation
controls 76 per cent of the holdings in
the whole section, including the Me-
saba and Vermillion iron ranges of
Minnesota.
Pays Royalty to Owners.
"Most of the steel corporations ore
property consisted in 1907 of lease
holds and not ore in fee. For mining
from these it pays royalty. One of
the leaseholds was acquired from the
Great Northern railway interests
which had obtained control of i'm
mense tonnages of ore by purchase OF
lease for the protection of traffic.
"The royalties stipulated in the
Great Northern lease were and still
are far above the market value and
the only reasonable explanation oi
this extraordinary transaction, accord
ing to the commissioner of corpora
tions, is that the steel corporation de
sired to protect the ore either from
being mined and sold to Independent
producers, thus possibly depressing
the price, or from being utilized By
the Hill interests to build up a new
and dangerous competitor in the iron
and steel business.
'The steel corporation disclaimeG
any intention to hold off competition
by this lease and asserted it merely
desired to strengthen its own reserves
But whatever the motive for this
transaction, according to the commits
sioner of corporations, its practica
effect was to forestall competition a!
we'll as increase the corporations con
troll of the ore resources of the coun
trw
Besides the Great Northern lease
held the steel corporation has man.
others. 1t is estimated that two
thirds of its holdings in the Lake Su
perior region is held in that form.
The common term of lease II
fifty years, and the effect of this sys
tenn is a corner in ore which prevent
others from getting possession of tn
nrnrprty -