The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1912-01-05
COMING CANCELLATION OF LEASE
BY STEEL TRUST CAUSES
SPECULATION
DIVIDENDS ARE EXPECTED SOON
Bulk of $4,000, 900 in Royalties Due
Certificate Holders Dec. 31-Janu-
airy Statement Will Clarity
the Situation.

Il, L.
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 one outside of the trus-
tees and a few other inside interests
have had any data upon which to
base az estimate of their intrinsic
value.
Wall Street spectators, as well as
investors, have been Yldisinclined 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 few of these purchases
were made by investors at 80 or high
er. Recent prices have shown loss
of nearly so points on such invest
ments.
Source of Dividend Money.
It is now 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. 1t
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 $10,502,000.
The failure of the trustees to de-
clare the usual semi-annual dividend
of so cents share within the last
month or so, has caused comment as
to the probable continuance of pay
ments on certificates. It was sug-
gested that the cancellation of the
lease apparently meant a cessation of
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
the income from the holdings was
about $3,O00,00 year, and that the
trustees had surplus of between
s6,O00,OOO and 100000 on hand
James j. Hill estimated the amount
of ore in the lands at 500,000,000 tons,
but it is declared that the estimates
Of the United States Steel corpora
ton have shown about 100000
tons in half of the property. A short
threatened to pass law taxing all of
the ore underground, and this led the
steel corporation to stop prospecting
for the time being. 1t is understood
to have expended $13,000,000 in de-
veloping the ore properties.
When the lease is terminated on
Dec. 81, 1914, the steel corporation
will have paid for 100000 tons of
ore on which the royalties will ag-
gregate $27,244,000. This sum is equal
to over SIS share for the Great
Northern ore certificates, of which
there are 100000 without par value.
1t is said to be the intention of the
trustees to issue an annual statement
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 20 3SB on transactions in $500.