The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1912-10-19
TEST ORE CONSERVATION
Minnesota Mining Companies Operating
State Leases Face New Difficulty

<~%fr~ 49, - = - - -Ttgft~
The question Of the right OF mining
companies in This section TO let valu-
able mineral properties lie idle until
the day comes when the ore will be
more valuable or when the bodies they
have now open and are working upon
will be depleted and the reserve ore
may be called upon is beginning TO at
tract unusual attention, especially IN
the west side district where many OF
the fees are owned by local people who
want TO get something ont of the pro
perties while they are alive and not
leave IL all TO their heirs. Recently a
lease upon the Youngs property at Pa
latka was in the circuit court and the
decision was in favor of the mining
company. We understand that the case
has been appealed TO the supreme court
Of this state.
Another action has been brought
against mining company by the fee
owners of the DeGrass property and
we hear rumors of similar actions he
ing started by the owners OF the Blair,
Michaels and other properties in that
section where the heavy surface over
burden has induced mining companies
10 pay the minimum royalty and wait
for better markets before undertaking
the expensive burden of opening mp
these properties. The leases in most
of these cases call for low minimum
royalties aud the fee owners are not
content with their receipts. Most OF
the mines on corporation owned pro-
perties pay minimums of sufficient size
to satisfy the stockholders SO that there
wilt probably be no question in their
case.
In Minnesota new difficulty has a
risen over leases on state lands that
threatens seriously the peace Of mind
of companies holding them. In re.
cent article on these leases the Duluth
Herald says
Question of the right OF companies
holding leases on state iron mines TO
let them lie idle and pay the state only
81 800 a year, the minimum royalty
has attracted much attention in the
office of he state auditor aud attorney
general the last few days. and is looked
upon as one of the gravest matters
which has come up for consideration
in recent years
The Consumer Ore company, op-
Grating the Wacootah and Hanna mines
near Virginia, Mimi. found strata of
iron ore near the surface which con-
tanned so much aiumina and sulphur,
the company declared the product un
merchantable and asked permission 10
stockpile It, This was refused. II. +.
ttrant, general counsel of the company,
wrote s. S Iverson, state auditor as
follows
- In my opinion, the Consumer 5
Ore company has the absolute right to
mine all the ore it wants to- merchant
able or unmerchantable. and stockpile
il on the premises without the pay
ment of royalty till il is actually re.
moved. provided the company pays the
state minimnmin the meantime and
the ROYALTY ON ore actually removed
According TO Mr. Iverson. il this
were true. millions Of tons Of iron ore.
OH which the state should he realizing
gigantic fund. would lie idle for
wears and the state get nothing.
Assistant Attorney General Steven
son gave All opinion in which he cited
a clause in the lease which provides
that the mine operators on state lands
snail open. use and work them in the
manner which is usual and customary
in skilled mining Stock piling ore.
he declares, would not comply with
this section OF the lease.
/" II is a grave matter for the state.
Mr.. lverson said Most OF the mines
have been leased for periods Of ttty
Years, and have from thirty live 70
forty years TO run II the ore ~ not
taken from them in the usual and Gus
tomRry manner, the state viii lose
thousands of dollars Instead Ot the
mine being worked aud made 80 paw
500. 600 wear IL would lie idle and
paw only 81. $50 "a year. We cannot
take the view that the uining COM
pany takes aud do not nropuse to.