Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1912-01-03
COMING CANCELLATION OF LEASE
BY STEEL TRUST CAUSES
SPECULATION.
DIVIDENDS ARE EXPECTED SOON
Bulk Of $1o,ooo,o00 in Royalties Due
Certificate Holders Dec. 31-Janu-
airy Statement Will Clarity
the Situation.

NOItuc1u ORC pIOpciLleS VI, Tue luLGu
ton to cancel the lease Of those prop
critics Jan. 1, 1915, holders of certif
Gates of beneficial interest issued by
the trustees, and Wall Street in gen
eral, have been more puzzled than
ever as to the real value of the certifi
Gates. They are without fixed pal
value and no one outside of the trus
tees and few other inside interests
have had any data upon which to
base an estimate of their intrinsic
value. i;
Wall Street spectators, as well 6s
investors, have been 'disinclined OF
late to buy certificates, because OF
the foregoing considerations, and
scattered holders have been disposed
to sell, although in most cases pur.
chases were made on much higher
levels. Not a few of these purchases
were made by investors at 80 or high.
er. Recent prices have shown loss
Of nearly so points on such invest
ments.
Source of Dividend Money.
It is now asserted that the dividends
thus far paid on certificates have not
come from moneys. received as roy
alties from the Great Western Mining
company, but entirely from leases
other than those of that company. It
has not been generally known that
such leases existed. Furthermore, it
is stated that all moneys received
from the Great Western Mining COM
pany, under the terms of the lease
with the United States Steel corpora
ton, are held by the trustees of the
ore certificates, and have been invest
ed in bonds and other securities. By
the close of this year the sum that
will have been received from this
source will amount to $10,502,O00.
The failure of the trustees to de-
clare tie usual semi-annual dividend
of 50 cents share within the last
month or SO, has caused comment as
to the probable continuance of pay
ments on certificates. It was sug-
gested that the cancellation of the
lease apparently meant a cessation of
the income. But the sum that the
trustees have on hand intact is large
enough to warrant further payment,
unless the money is being reserved
for a specific purpose.
$ According to the estimates in 1907
the income from the holdings was
about So 100000 year, and that the
trustees lad surplus of between
$6,00o,O00 and 100000 on hand.
James J. Hill estimated the amount
of ore in the lands at 500,O00,0O0 tons,
but it is declared that the estimates
of the United States Steel corpora
ton have shown about $4,000, 900
tons in half of the property. A short
time ago the state of Minnesota
threatened to pass a law taxing all of
the ore underground, and this led the
steel corporation to stop prospecting
for the time being. It is understood
to have expended $13,000,O0O in de-
veloping the ore properties.
When the lease is terminated on
Dec. 81, 1914, the steel corporation
will have paid for 100000 tons of
ore on which the royalties will ag-
gregate S27,244,0o0. This sum is equal
to over $18 share for the Great
Northern ore certificates, of which
there are 100000 without par value.
1t is said to be the intention of the
trustees to issue an annual statement
in January in which the position of
the properties will be made clear to
certificate holders. On the stock ex~
change certificates advanced ~
points to 1884 on transactions in :. 900