Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-02-13
James j. Hill Tells
About Ore Deal.

Washington, Feb Flames j. Hill,
| chairman Of the board of the Great
Northern Railroad, gave the STANLEY
Steel Trust Investigating committee
today, an account OF himself as q
philanthropist toward the stockholders
OF the railway company. Mr.. Hill told
/ how he bought properties for more
than four million dollars, turned them
over for that amount to the Lake Su-
| perior Co.. Limited, as trustees for the
railroads stockholders. and presented
the stockholders with pro rata eertifi-
Gates for the increased value of the
property which accumulated rapidly
and amounted to millions.
The railroad magnate was questioned
kat length regarding the lease of these
ore lands to the United States Steel
Corporation for development, a lease
which the corporation recently decid-
ed to cancel on Jan. /, 1915. In this
land there are estimated to be about
500 COO 600 tons of ore which the Steel
Corporation values at 81 a ton.
y wouldn't take 81 a ton for the
ore" said Mr.. Hill. The ore freight
rate from the Lake Superior region to
the Fittsburg district, which the
nited States Steel Corporation recent
Iy reduced to so cents ton. Mr.. Hill
said, was the cheapest in the country.
And il will be still lower" he said.
"'rhe next rate viii be go cents.
why did they cut the rate he was
asked
why. think the Steel Corporation
Just got scared to DEATH he replied.
That's all there is to it
But you get your royalty Just the
same" asked Mr.. Young. And when
the lease runs out, You've got the ore.
Yes" AR Hill replied. what diff
ference does it make? I'll have the ore
aud it doesn't go out of fashion and
the hfe risk IS quite low
Rep. Gardner asked the witness why
he turned oyersthe properties to the
Lake superior co. for the benefit of
stockholders Mr.. Hill replied that the
trustee company reimbursed him for
what lac had paid, and the increased
value was "A gift to the Great Northern
stockholders
'9rhe trustee company paid to me what
| paid for the property. Il little over ST.
OOo000 with & per cent. interest," SAID
Mr.. IIiil aThese properties Immediate
~ TOOK an tOHSlutfdbif dhhtti3tteai NehiN'N
and could make money for the stock
holders There was nothing to conceal
about it, Wherever i saw I could make
money for the stockholders, that way
/ did it
Did the stockholders of the Great
Northern Railway pay anything to the
Lake Superior co? ?" asked Mr. Gardner.
mo Their interests were a gift to
them
"Why did the stockholders get this
gift?" asked Mr. Doal of Texas
81 got back all | had paid and the
stockholders of the railroad got the bene-
fit of the additional value" said Mr.. Hill.
IF / could make money for myself, L
could make it for the stockholders |
was in measure dealing with myself
/ bought the property to get control IF
the transportation of the ore in the Lake
Superior region. Subsequently develop
ments showed the property was worth
vastly more than 100000.
II bought the properties as an indi-
viduaI," Mr. Hill continued, because as
a railroad company l do not think the
Great Northern would have the legal
right to own and operate mines.
"But you, as president, could own and
operate mines and distribute the stock
to the railroad stockholders" asked
Chairman Stanley.
Yes, or give it to the people" said
Mr. Hill.