Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1912-02-13
HILL TELLS Of BIG
LAKE SUPERIOR
ORE DEAL
AGED EMPIRE BUILDER IN
ROLE OF PHlLANTHR0PIST
Purchased -Four Million Dollars
Worth of Securities and
Turned Them Over to Stock
holders of Railroad.
lBy Morning Journal special Leased wir..I

IBy Morning journal special Leased Wire. I
Washington, Feb. 12.--James j.
Hill. chairman of the board of direc-
tors of the Great Northern railroad
told the Stanley steel trust inyestigat-
ing committee today story of him
self in the role of a philanthropist to
the stockholders of the railway COM
pany
Mr.. Hill told how he had bought
properties for more than s4.000.0 600,
turned them over for that amount to
the Lake superior company, limited,
as trustees for the railroad stockhold-
ers, and presented the stockholders
with pro rata certificates for the in
creased value of the property which
accumulated rapidly and amounted to
millions.
The railroad magnate was question
cd at length regarding the lease of
these ore lands to the United States
Steel corporation for development "A
lease which the corporation recently
decided to cancel on January |, 1915.
In this land there are estimated to be
about 0.00O, 900 tons of ore which
ton.
Il would not take 81 a ton for the
ore." said Mr.. Hin.
The ore freight rates from the Lake
Superior region to the Pittsburg dis
trict which the United States steel
corporation recently reduced to eighty
cents ton. Mr.. Hill declared to be
the cheapest i'm the country.
And IT will be still lower" said he.
The next rate will be sixty cents
why did they cut the rate?" he
was asked.
why. | think the steel corporation
Just got scared to death, he replied.
That's al there is to it.
But you get your royalty just the
same" asked Mr.. Young.
Yes
And when the lease runs out
you've got n r. ore 2"
"yes," Air (iIill replied What diff
ference does II make. I'll have the
ore and ore doesn't 20 out of fashion
and the fire risk H. quite low"
Representative Gardner asked the
witness why he had turned over the
properties to the Lake superior com
pany for the benefit of stockholders.
Mr.. Hill declared the trustee com
pany reimbu him for what he had
paid and the increased value was Il
gift to the Great Northern stockhold-
ers.
The trustee company paid me
what | paid for the property, a little
over $4,000. 600 with five per cent in
tcrest." said Mr.. Hin. Those proper
ties Immediately took on considerable
value. There was nothing to conceal
about it, wherever | saw | could make
money for the stockholders that way
! did it
Did the stockholders of the Great
Northern company pay anything TO
the Lake Superior company" asked
Mr. Gardner
NO, their interests were a gift to
them"
why did the stockholders get this
gift >" asked Mr.. Beall of Texas.
Il got back all | had paid and the
of the railroad got the
MIR. Hill. "If ! could make money for
myself | could make ii for the stock
holders. was in a measure dealing
with myself ! bought the property
to get control Of the transportation of
the ore in the Lake Superior region.
developments showed the
property was worth vastly more than
50 900, 000.
II bought the properties as an in
vestment," Mr.. Hin continued. be
cause as railroad company, do not
think the Great Northern would have
he legal right To own and opcr'te
mines"
But. you as president. could own
and operate mines and distribute the
stock to the railroad stockholders?
asked Chairman Stanley.
Yes. or give II to the poor said
Mr.. Hin.