The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1912-01-19
MORE LEASE NEWS
Hill Leases and Dividends
to Stockholders

trustees OF the Great Northern ore
properties of the intention to cancel
the lease of those properties January
1, 1915, the holders of certificates
of beneficial interest issued by the
trustees, and Wall street in general
have been more puzzled than ever
as to the real value of the certif-
Gates. They are without fixed par
value and no one outside of the
trustees and a few other inside
interests have had any data upon
which to base an estimate of their
intrinsic value.
Naturally it was assumed that
without the United States Steel
corporation for a customer for it's
ores the value of the certificates
would be more uncertain than ever,
inasmuch as even the trustees
themselves do not know yet what
arrangements they will make for
the mining and the sale of ores
after the lease now held by the
United States Steel corporation
through the Great Western Mining
company, is terminated.
1t is now asserted that the div
idends thus far paid on certificates
have not come from moneys received
as royalties from the Great Western
Mining company but entirely from
leases other than those of that
company. 1t has not been
generally known that such leases
existed. Furthermore it is stated
that all moneys received from the
Great Western Mining company,
under the terms of the lease with
the United States Steel corporation,
are held by the trustees of the ore
certificates, and have been invested
in bonds and other securities.
i By the close of this year the sum
that will have been received from
this source will amount to $1O,-
SOP 900.
II. is explained that the reason
for keeping this money intact is
that the lease with the Great
Western Mining company covered
not only the lands held by the
Great Northern Railway company
but also the properties controlled
by other corporations and in.
dividuals.
1t is said that the Northern
Pacific Railway company has an
interest in these properties to the
extent of perhaps $50, 900, 900 anc
that there are several other sub
stantial holdings.
These outside properties include
not only ore lands, but docks
terminals, etc. From this it may
. be seen that the entire amount o.
$40, SOP 900. which will at the enc
of this year be due as royalties from
the Great Western Mining com
pany, does not belong entirely to
the ore trust certificate holders
4 although it is said that larger
proportion of it does.
| At the end of 1914, at which
time the lease with that company
will be terminated, the Great
| Northern ore trustees will have
received the grand total of ST., >
| 40 900 from that company. Thi:
does not include, of course; what
the company may continue to re-
lceive from other sources.
| The failure of the trustees tc
declare the usual seni-annual div
idend of SO cents a share within
the last month or so has caused
comment as to the probable con-
tinuance of payments on certif-
icates. 1t was suggested 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, unles:
the money is being reserved for q
| specific purpose.
! 1t has been suggested that the
ore trustees will go into the min.
ing business upon the termination
of the lease with the steel cor.
poration. 1t also may be conjec.
tured that in the event of the steel
corporation winning the dissolution
| suit brought by the government
the directors might consider the
advisability of renewing the lease
| At the time of the declaration oil
the first dividend of ore certificate:
| in 1907 there was considerable
comment npon the source of money
with which the dividend was paid
| 1t was pointed out that the pro-
perties had been mined for ten
years, but that no disbursements
had been made.
According to the estimates al
that time the income from thu
holdings was about s. 600, 900 &
: year, and that the trustees had :
: surplus of between S., 900, 900 anc
81 900, 900 on hand.
James J. Hill estimated thu
amount of ore in the lands at 500,
: 900. 900 tons, but it is declared tina
5 the estimates of the United State
: Steel corporation have shown
e about 357 ZOO, 900 tons in half o
e the property. Al short time ag'
5 the state of Minnesota threatene,
to pass law taxing all of the or