The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1912-02-13
CONTEMPT SHOWN.
BY HILL FOR STEEL
, CORPORATION DATA
Railway Magnate Chuckles
as He DiScredits Smiths
Report.


Chairman Stanley endeavored to get
the veteran railroad and ore magnate
TO verify Mr.. Smiths figures on the
value of the ores leased by the Steel
Corporation in the Mesaba field.
Mr. Smiths report shows that on the
basis of this value the Steel trust is
tremendously overcapitalized. After
listening to Mr.. Smiths figures Hill
leaned back in his chair, stroked his
beard, chuckled, and said:
i started to read that report, but
found that 1t was so far from the facts
as ! had found them in my experience,
that l did not complete it,"
The committee sat aghast at this, for
great part of their investigation has
been based on the Bureau of Corpora
lions report. Finally Congressman Gard
ner went after Mr.. Hill to find out just
what the ore magnate believed was in
accurate about the report
We'll, didn't read the report with
the greatest care said HILL but from
what l did read / concluded from my
knowledge of the facts that It was NOT
accurate and l dropped it."
Mr.. Gardner argued with Mr.. Hill but
without avail The man who made the
Mesaba range would not admit that the
Federal investigators had analyzed the
facts properly. Mr.. Stanley Interrupted
to ask:
Did you ever know of ore leasing in
mat range for more than 40 cents a
TONI"
II know that I've been told of other
people paying s. and 20 cents ton" re-
turned Hill.
Conclusions Wrong.
Finally Hill admitted that the facts
In the Smith report might be true.
So far as the facts are concerned I
believe he stated the facts" he said
but L cannot agree with his conclu-
sions."
Mr. Gardner, declaring the matter of
the utmost Importance, asked Hill If he
would not read the report thoroughly
ana point out the inaccuracies he found
to the committee
Il am not an expert" replied Hill,
and, besides, l have not the time. You
can can get men who have given their
lives to the study Of this question who
know 1t better than do"
Mr., Stanley read from. the report OF
the Bureau Of Corporations that the
Steel Corporation owned 70 per cent of
the MeSaba field.
That's about right" said Mr.. Hill.
The remainder Of the ore Is held by
various other steel corporations"
The value of the Sauntry mine, pur-
chased by John w. Gates in 1899. oc-
.cupied half an hour of the committees
time. Seven hundred thousands dollars
was paid for the mine or less than
cent q ton. These figures Mr.. Stanley
read from the Smith report.
Mr.. Hill agreed with the various wit
nesses who have told the committee
that there is no more available ore in
the country.
II should think the Steel Corporation,
with its $1,5OO,0O0 200 in stocks and bonds
would be anxious to have an ore re-
serve that would last forty or fifty
years. l would If l was in its place,
he remarked.
Then why do you suppose they can
celed the lease of your ore land?"
II think they Just got scared to
just went white" and Hill chucklcd
'Why?" asked Stanley.
Hill was at loss and Attorney Reed
for the Steel Trust interrupted:
Because the departments of the Gov
eminent were camping on their trail"
Il do not know of anyone camping on
the Steel Corporation's trail, said Mr.:
Corporation is not among the 400 the
good book says Flee when no man pur-
sueth.'
Tells of Holding Company.
When Mr.. Hill began his testimony
Chairman Stanley questioned him as to
the Lake Superior holding company,
which held the ore lands in the Mesaba
field for the benefit of the shareholders
of the Great Northern Railroad. He
ascertained that this concern had been
reorganized into the Great Northern
"Was this joint stock company"
mo: 1t was a trust, pure and simple"
said Mr.. Hill. 1T held these lands for
the railroad company shareholders"
what was the capital of the Great
Northern road at that time?"
"One hnndred and fifty million dol
lars"
"How much of this did you own"
zone hundred thousand shares" said
lat tii that time wasn't this railroad
stock selling at 1l7?"
"1 can't recollect. 1t sold as high
sixty days after this ore was turned
over did not Great Northern stock go
to 1902"
remember"
Mr.. Stanley took up the question of Mr.
Hills acquiring lands adjacent to the
Wright and Davis tract.
while you were acquiring these lands
from individuals and from the State
OF Minnesota, prior to the time you
leased it to the Steel Corporation, you
never leased at a higher royalty than
40 cents a ton. did you?'' $500,
That is not MATERIAL said Mr.. HILL
land I'm sure we paid more. But the
royalty would not form basis for as
pertaining the value of the laEds.
Leases Controlled.
Mr.. Hill betrayed a remarkable ignor-
ance of the location of ore lands in the
MeSSaba range.
GLOW far from the Mahoning mine
was the mine known as the Hin mine?"
asked Stanley
Il do not know where the Hin mine
is answered it's namesake. MI Stan
ley ELECTED that, at the time Mr. I'M
leased his vast ore holding to the Steel
Corporation he and a firm called Long
ear & Bennett controlled leases on
practically all of the ore field except
what was held by various steel com
panies. The Longear & Bennett firm
entered with Hill into the lease to the
Steel Corporation. No ore has been
taken from the Longear & Bennett
properties, but the HIN properties have
been mined and royalties paid on the
ore taken out.
Now, why should the Steel Corpora.
ttOn mine your ore and not that or
Longear & Bennett?" demanded Stan
ley.
i could only give my opinion" said
Hin, and that would be that my mines
are more convenient"
Mr.. Hin and Mrs. Stanley discussed
details of mining ODpFatiOnS in the Mes