Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-02-13

James J. Hill told the Stanlfy steel
trust investigating committee today that
the report Of the bureau Of corporations.
compiled by Commissioner Herbert Knox
Smith, on ore values was not worth read
ing He said he had read part Of 1t and
concluded it was of no value. -
''Mr. Smiths report may have some
! facts" said Mr.. Hill. "but his conclusions
| are so far from mine that I could not
finish reading It.
Representative Gardner Of Massachu-
setts urged Mr.. Hill to read the report
thoroughly and then give the committee
the value OF his opinion.
I'm not an expert said Mr.. Hill, "and
/ neither have I time to study the report
carefully. My opinion would not aid the
committee much"
Were the inaccuracies you discovered
in reference to ore leases or the whole
subject?" asked Mr.. Gardner.
Il didn't read any Of it carefully, Mr..
Hill replied. From what I did read,
judging by my knowledge of the facts
concluded the report wasn't worth read
ing. There was a time years ago when
those entire ore lands wouldn't have
brought 81 100000. That would be no
criterion for establishing it's present
value. Fifteen years ago MI Smith had
figures fixing the minimum rate of 25
cents tom
Mr.. Hill said he knew that some people
had paid as high as IS cents a ton OF
ore leases since the steel corporation went
into, that field. Representative Young OF
Michigan said he knew of an instance In
the early Sos where mine was leased
for as high as 80 cents q ton. That mine
was in the Vermillion range.
Chairman Stanley asked about the
Hull-Rust mine, which up to 1911 had
produced more than 15.0O0.OOO tons OF
ORE That is a steel corporation mine.
txz-hi ioh in he lo of nractic21ly
been abandoned.
II was there last summer" said Mr..
| Hfl. "and it seemed to me to be very
busy place
ii was there last fall and there was
practically nothing doing said Mr.
Stanley. There was only stray en-
gine footing around
Fifteen million tons is a good deal TO
| be. taken out by a stray engine, inter
posed d. A. Reed. counsel for the steel
corporation.
Chairman Stanley Puzzled.
The chairman said he was puzzled be-
| cause the steel corporation. with two
| railroads into the ore region, with
dozen mines on the Mesaba range in
operation and ready for mining at a
small cost, had sought unexplored land
why. then. at that time. did the steel
corporation lease from you undeveioped'
ton for the ore?" the chairman then
asked.
They can tell you better than T. said
Mr.. Hill, but their original ore hold
ings are limited and are becoming more
limited every year..
Cant you buy ore, Mr.. Hill, today?
Is all of ii pre-empted?"
Nearly ali the ore on the American
continent is owned today by people-it Is
hard to find new ore-fve tried it,"
The chairman called attention to the
statement Of Charles M. Schwab that to
start a new steel business was useless to-
day because no ore could be found not
controlled by some great steel company.
"I think the United States Steel Cor
poration with their 81, 800 100000 in stocks
and bonds would be anxious to have ore
in reserve to last forty or nifty years.
said Mr. Hill. II would if 1 were in
their place
"Well, then, why have they Cancelled
the Hill lease?" Mr.. Stanley asked.
II think they were scared to death:
think they lost their nerve" said Mr..
Hill.
THE departments Of the government
have been camping on our TRAIL" said MIR.
Reed. counsel for the corporation.
Questions Regarding Ore Company.
/ Resuming the examination Chairman
Stanley asked concerning the Great
Northern Ore Company. organized by the
1sdhe oupeT1OT SOHpdny,
WAS that a joint stock company
asked Mr.. Stanley.
!. mo, 1t was a trust company, pure. and
simple" said Mr.. Hill. The ore lands
were owned by different companies and
the trustees held the stock for the bene-
fit of the shareholders Of the Great
Northern railroad.
What was the capitalization of the
Great Northern railroad at that time?"
zone hundred and fifty million dollars"
said Mr.. HILL
what proportion was held by you and
the Hills
IT held one hundred Thousand shares.
NV sons had two or three thousand, I
think" Mr.. Hill replied.
Value of Railway Stocks.
Mr.. Hill was asked IL the railroad
stocks at that time sold at III.
'.Oh, they sold as high as 25O." he re-
piled.
.Have they sold as high as 3sO?" the
chairman asked.
Il, don't remember"
Within sixty days after the announce