The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1912-02-08
HILL DECLARES HE
MADE PRESENT TO
HIS STOCKHOLDERS
Received Nothing for
Ore Lands Given
WANTED FREIGHT
That Was Primary Reason
He Secured the Big Ore
properties
WANTED FREIGHT

as Il witness before the Stanley Steel
trust investigating committee today,
showed remarkable ignorance of the
location of the iron ore lands in the
Mesaba range. Hill told how the
Lake Superior holding company held
the land in trust for the stockhold-
ers of the Great Northern railway.
He said the reason the steel trust
mined his ores and that the lands
We're owned by others, was because
it was more convenient.
Washington. ID. C.-James j. Hill,
chairman of the board of the Great
Northern railroad, told the Stanley
steel trust investigating committee
today a story of himself in the role
of a philanthropist to the stockhold-
ers of the railway company. Mr..
Hill told how ne had bought proper
ties for more than $4,000, 600, turn
cd them over for that mount to the
Lake Superior company Qimited) as
trustee for the railroad stockholders
and presented the stockholders with
pro rata certificates for the increased
value OF the property, which accumu-
lated rapidly and amounted to mil
lions.
The railroad magnate was ques-
toned at length regarding the lease
of these ore lands to the United
States Steel corporation for develop
ment, a lease which the corporation
recently decided t cancel on Janu-
AIRY J., 1915. In this land there are
estimated to be about 800, 000,0 00
tons OF ore which the steel corpora
ton value at about n dollar a ton.
II wouldn't take one dollar a ton
for the ore," Mr.. Hill said.
The ore freight rates from the
Lake Superior region to the Pitts
buprgh district which the United
States Steel corporation recently re-
duced, Mr. Hill declared to be the
cheapest in the country. And it
will be still lower said he. The
next rate will be 60 cents
WHY did they cut the rate?" he
was asked.
Why, | think the steel corpora
ton just got scared to DEATH he
replied; that's all there is to it,
But you get your royalty Just the
same?" asked Mr.. Young.
Yes
And when the lease runs out YOU
have got the ore?"
Yes" Mr.. Hill replied. what diff
ference does it make? III have the
ore; it does not go out of fashion,
and the fire risk is low"
Works for Stockholders.
Representative Gardner asked the
witness why he had turned over the
property to the Lake Superior com
pany for the benefit OF stockholders.
Mr.. Hill declared the trustee com
pany reimbursed him for what he
had paid and the increased value
was a gift to the Great Northern
stockholders. The trustee company
paid me what ! paid for the property,
a little over $4, 1000 with pei
cent additional values and could
make money for the stockholders.
There was nothing to conceal about
it. Whenever | saw | could make
money for the stockholders that way
| did it,
Did the stockholders of the Great
Northern railway pay anything to
the Lake Superior company?' asked
Mr.. Gardner.
NO, their interest vas a gift tc
them
Why did the stockholders get
this gift? asked Mr.. Peel of Texas
II got back all | had paid and the
stockholders of the railroad got the
benefit of the additional value sale
MIR. Hill. If l could make none!
70 myself | could make it for the
stockholders. | was in a measure
dealing with myself. | bought the
property to get control of the trans
portation of the ore in the Lake
Superior region. Subsequent devel
opments showed the property wa!
worth vastly more than $4,000. 900
Il bought the properties as an in
vestment." Mr.. Hill continued, be
cause as a railroad | do not think the
Great Northern would have the lega
right to own and operate mines.
But you as president could Owl
and operate mines and distribute thu
stock to the railroad st~ockholders?'
asked Chairman Stanley.
Yes. or give it to the poor sale
Mr.. Hill.