The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-02-13
MAKES SUCKER"
OF STEEL COMPANY
JAMES ). hill TELLS INVEsTIGAT-
ING COMMITTEE OF HIS DEAL
IN MEsABA.
DIVIDES HIS WINNINGS
SAYS BREAKING OF HIS LEASE
WOULD NAVE No EFFECT
As INSURANCE Is Low
on IRON.
DIVIDES HIS WINNINGS
BY JAMES j. MONTAGUE.

WASHINGTON. u. G., Feb. le.--
JAMES j. lin, creator of the Great
Northern Railway. told the Stanley
steel committee today how out OF his
own pocket he had bought - ,0UU. 0OO
worth OF ore and railroad property on
the Mesa ua range, how he mad en-
Gineercd graded lease with the
United States Steel Corporation 10y
the terms OF which the trust was
nnmer cIfully "chiseied. paying $l.02
per ton for ore, while independents
paid other companies between ID and
81 cents; how he had turned over
the Mesaba properties and half ii
dozen other concerns to the Lake
Superior Company. Limited. thus
keeping inside the sherman act. and
how the protlts of the Lake Superior
Company afterwards had been turn
ed into the Great Northern ore Com =
pany whose stock was distributed
share for share among the sharehold-
crS OF the Great Northern hallway
Company.
Nh. Iiili confessed that he did this
because for thirty three years he had
acted as trustee for the Great North
ern shareh olders, and made II a rule
to make money for them whenever he
did for himself. What he did not tell
button of Great Northern ore stock
sent Great Northern Railway stock
up to $500 in 1907, u the great ad.
vantage of insiders.
Keeps Family Secrets
Nor did MIR. IlilI give the commit
tee any inkling of what proportion
of Great Northern Railway share.
holders is composed by the lin fam
lily, Of which there are father. three
sons and a daughter. all with big
interests.
II is possible that he Will make
these condolences tomorrow morning
Whom he will return to the witness
chair.
Mr.. Hill said that he lost nething
| by his generosity To the sharchold
crs of his road, although he stood
to lose If the Investment he made
! had turned out badly lle-got hi.
! $4,000 900 back from the Lake Su.
! pcriar EnmpanN,- With per cent IN
! terest Incidentally he secured fol-
the railroad the privilege of holding
and leasing the mines In the Mesa Ia
and building and operating an cleva
| tor in Buffalo, privileges which woult
| have been denied the railroad as :
corporation.
AAF-titfi- had with him rs an at
| torney John +. Carroll of st. Louis
but he did not use him. lie was no
n timId or suspicious witness LIKE
Carnegie He looked every commit
tee questioner squarely in the ey
and the cheerfuness of his reptile
helied the soowl. which is a habitua
resident OF his lowering forehead
There were few things that he di
not remember.
Lease Doesn't Control Market.
When the hearing was adjourne,
for the day Mr.. HIN came up to tn
committee table. drew n map of tn
Mesa ba range for the benefit of MI
| Young, OF the committee and chatte
for a few minutes about the cas-
with which he soaked" the Stee
Corporations Beside getting a ter
rifle rate for his ore. his road doe
most of the carrying out of the Me
saba for the corporation, all undo
contract. and he is far from dis
pleased with himself about it all.
When Mr.. Young asked him II
possible breaking of the lease woul
send ore down. the grizzly magnat
replied;
Il don't believe ore would go an
lower. 1t is comparatively sure wher
ii is 1T costs little to keep and tn
fire insurance rates on il are very
very low"