The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1912-02-13
HILLS OPINION
Of SMITH NOT
COMPLIMENTARY
Says Commissioners Report
on Iron Ore Values Not
Worth Reading
had SOME FACTS BUT HIS
DEDUCTIONS ARE WORTHLESS

Iron Ore Lands Were Not Worth q
Million But That Is No Criterion at
This Time.
Washington. Feb. l3.-James ].
Hill told the Stanley steel trust In
vestigating committee today the re-
compiled by Commissioner Herbert
Knox Smith on orc values was not
worth reading. He said he had gone
over part Of it and concluded it was
OF no value.
Smiths report may have some
facts" said Mr.. Hill. but his conclu-
sions are so far from mine l couldn't
finish reading It."
Representative Gardner Of Mass
report thoroughly and then give the
committee the value Of his opinion.
I'm not an expert" said MIR. Hill.
and neither have the time to study
the report carefully. My opinion
wouldn't aid the committee much.
There was a time years ago." he
continued. when those entire lands
wouldn't have brought $1,000. 900.
That would be no criterion for estab-
years ago Smith had figures fixing the
maximum rate at 25 cents q ton"
Hill said he knew some people who
paid as high as 65 cents ton on ore
leases since the steel corporation went
into the field.
Under the Hill lease" he said, the
steel corporation got whatever ore
was In the land.
What did you pay for the railroad
Il.
-Four millions and fifty thousand
dollars" said Mr., Hill. IT gave them
81. 100000 and then further amount
and portion was left until they were
In position to turn 1t over
Wasn't the first million taken out
OF the funds Of the Great Northern
railroad.
Not a penny Of it,
Didn't you say before the Mime
from the Great Northern?"
Il said that not cent came from
the Great Northern"
Other lands turned over to the steel
corporation were those in which the
Hills owned an interest. Other own
ers got the sarue prices as Mr.a4HN
One firm was Longyear and Bennett.
"At the time of this lease was there
any open mine on the Longyear and
4SauoS1 MI. SldulGy dSNC0.
''Eot that I know off,
The steel corporation agreed. did
1t. that 1t would pay certain amount
per ton ON ore?"
They agreed to develop the mines
and pay for what they took out" said
Mr.. Hill.
The Lake Superior company. he
said, was limited liability company
holding several properties.
The railroad magnate was question:
ed at length regarding the lease Of
steel corporation for development. a
lease which the corporation recently
decided to cancel January /. 1915. In
this land there is estimated to be
about 500.000,000 tons of ore which
the steel corporation values at 81 q
ton.
IT wouldn't take 81 ton for the
ore," said Mr.. Hill.
The ore freight rate from the Lake
trict. which the United States Steel
corporation recently reduced to 80
cents a ton. Mr.. Hill declared to be
the cheapest in the country.
And it will be still lower" said ne.
THE next rate will be so cents"
"Why did they cut the rate?" he
was asked.
why I think the steel corporation
Just got scared to DEATH" no replied.
That's all there Is to it."
But you got your royalty just the
same?" asked Mr.. Young. land when
the lease runs out you've got the
ore"
"Yes." MIR. Hill replied. what diff
ference does it make? I'll have the
ore and it doesn't go out of fashion
and the fire risk is quite low"
Representative Gardner asked the
witness why he lad turned over the
pany for the benefit Of the stock
holders Mr.. Hill declared the rus-
tee company reimbursed him for
what he had paid. and the increased
value was gift to the Great Northern
stockholders
"The trustee company paid me
what l paid for the propert'' a little
over $4.000.000.00 with per cent
interest" said Mr.. Hill. ''These pro-
erahle additional value and could
make money for the stockholders.
There was nothing to conceal about
1t. Wherever I saw could make
money for the stockholders that way
I did it."
Did the stockholders Of the Great
Northern railway pay anything to the
Lake Superior company" asked Mr..
Gardner.
them."
"why did the stockholders get this
gift?" Asked Mr.. Beall of Texas.
IT got back all I had paid and the
stockholders Of the railroad got tho
benefit Of the additional value" said
Mr.. Hill.
"If could make money for myself,
could make 1t for the stockholders.
was In measure dealing with my
self. Bought the property to get con-
troll Of the transportation Of the ore
in the Lake Superior region, subse.
quent developments showed the prop
erty was worth vastly more than
$4,000. 100000.
II bought the properties as an In.
dividua" Mr.. Hill continued because
do not think the Great Northern az
railroad company would have the
legal right to own and operate the
mines"
But you as president could own
and operate mines and distribute
stock to the railroad stockholders? 2"
asked Chairman Stanley.
"Yes. OF gfve it to tho poor" said
Mr.. Hill.