New-York tribune., 1912-02-13
JAMES J. HILL TELLS
Of ORE LAND GIFTS
Glad to Make Money for Great
Northern Stockholders, He In
forms Stanley Committee.
TRUST IS SCARED, HE SAYS
Reduced Ore Rates Resulted, ard
May Be Cut Again-Tennes-
see Subsidiary Lost Many
Convicts This Year.

washington, req. l.. - JAMES D. '''i'
chairman OF the beard OF the Great North
ern Railroad. told the Stanley steel inVes-
tigatiug committee to-day story of HIM
self in a role of philanthroplst to the stock
holders of the Railway company.
Mr. ilill told how ne had bought proper
ties for more than $4O00,0Oo, turned them
o?er FOR that amount to the Lake Superior
Company, Limited. as trustee for the rail-
road stockholders. and presented TO the
stockholders pro rata certificates for the
increased value Of the property which
accumulated rapidly and amounted TO mill
ions
Mr.. Hin testified at length regarding the
lease OF these ore lands TO the United
States Steel Corporation for development,
a lease which the corporation recently de-
cided to cancel on January l. 1915. In this
land there are estimated to be about JN-
100000 tons Of ore. which the Steel Corpora
ton values at 81 a ton.
81 wouldn't take 81 ton for the ore
said MIR Hill.
The ore freight rate from the Lake Su-
perior region to the Pittsburgh district,
which the United States Steel Corporation
recently reduced to 50 cents ton, Mr.. Hiil
declared to be the cheapest in the country.
next rate will be 80 cents"
why did they cut the rate?' he was
asked.
SAYS Corporation Was Scared
why. think the Steel Corporation just
got scared to DEATH" he replied. THAT
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." Mr.. Hill replied. What diner
ence does It make? I'll have the ore and
II doesn't go out Of fashion and the fire
risk is quite low
REPRESENTATIVE Gardner asked the Wit
ness why he had turned over the proper
ties TO the Lake Superior Company fof
the benefit of stockholders. Mt Hill de-
clare6 the trustee company reimbursed MIN
for what he had paid, and the Increased
value was a gift to the Great Northern
stockholders.
"The trustee company paid me what l
raid for the property, a little over %'VV-
ooo with per cent interest" said Mr.
Hill. These properties tmmedlateY tooh
on considerable additional value ana coulo
make money for the stockholders. There
was nothing 10 conceal about IT. Wher-
ever I saw I could make money for the
stockholders that way l did H."
Did the stockholders of the Great North
.rn Railway pay anything TO the Lake
Superior Company" asked Mr.. Gardner.
mo. their interests were gift to them"
"Whv did the stockholders get this gift|'
asked Mr.. Bean. of Texas.
Was Dealing with Himself.
10 I'D
holders Of the railroad got the benefit OF
the additional value" said Mr.. Hill. III
could make money for myself, l could
make il for the stockholders. / was, in
measure. dealing with myself. bought the
pronerty to get control Of the transporta-
tion of the ore in the Lake superior region
Subsequent developments showed the prop
ertv was worth vastly more than 100000.
II bought the properties an individual,
because as a railroad company l do not
think the Great Northern would have the
legal right 20 own and operate mines"
But YOU, as president. could own and
onerate mines and distribute the stock to
the railroad stockholders" asked Chairman
Stanley.
Eyes. or give it to the poor" said Mr. Hill.
+ d. Oakley. president of the Alabama
convicts had usually been utilized by the
Tennessee Coal and Iron Company, a SUD-
sioiary of the Steel Corporation, but thls
year in the absence of a contract. the con-
victs had been turned over to coal com
pany., Oficers of the steel company pro-
tested against this and George Gordon
Crawford, the president. said that eventu'
ally the company had intended to replace
convict with free labor, hut that such
change would take time and it was neces'
sary to procure convicts Tor 1912
Asks About Discipline.
when convicts are leased out" asked
Chairman Stanley, are they disciplined by
their employers"
THE men who make the contracts fire.
ouently hire their own warden and guards
Mr.. Oakley replied, but the convicts are
always subject TO the jurisdiction OF Inc
state
Misdemeanor prisoners the witness said
are subject 10 hard labor. If man l'
fired and does not pay IL be works out
his fine as a convict laborer.
~ a man receives less than a two-yeaI
sentence. in Alabama" Mr., Oakley con-
tinued he becomes county Instead OF q
state convict. no matter what the oHence
4!MnMEY" pP0RERS AT 0D0S