The Washington times., 1915-09-18
JOHN D. TO GIVE UP
COLORADO FUEL CO.
TO JAMES ]. HILL
Negotiations Wei Under Way
for Merger With Great
Northern Oil Properties.
k0cKEFELLERs AID LABOR
Sale Of TroubIous Property and
8-Hour Day for Oil Work.
ers Significant.

NEW YORK. Sept. 1s.-Control Of the
Colorado Fuel and Iron Company. the
big Western property Of the Rockefel-
Iers. which in the last few years has
had a most tempestuous career, will at
~ early date formally pass into the
Y.Nnds Of interests represented by the
veteran railroad magnate. James J.
Hill.
Hill ore holdings in Michigan. known
officially as the Great Northern Iron
Ore Properties. A revolution In the
handling Of iron and steel products for
the far Western section Of the United
States is looked for by men in the trade
who have been closely following the de-
velopments.
Pending the conclusion Of neeotia-
tions for the merger. which have been
under way for several months. no for
NAL announcement as to the changed
affairs in the Colorado Fuel situation
is looked for, but 1t is common opinion
smong the steel men referred to that
deninls Of the changes will be made,
although the facts regarding the pro,
posed deal are well known In several
quarters.
SENTIMENTAL Nc0oOus
The passing Of the Rockefellers from,
control Of the Colorado Fuel and Iron
Company. in view Of the new stand
Which those interests are taking on
labor matters, has not been without its
sentimental reasons In one opinion
which has found ready belief.
For months there has been a stralninE
Of endeavor on the part 1T the Rookie
fellers to eliminate the impression:
I,. lot, lnh ~
vigorous hostility by those interests to
labor, particularly because Of the ad-
verse publicity given by John p. Rookie
Teller. ir.. in his testimony before Fed
Announcement in the last few weeks
Of voluntary establishment by the
Standard Oil Company Of New Jersey.
the greatest Of the Rockefeller oil COM
panies. Of the eight-hour day for its
25.0OO workingmen was an initial step in
the new work.
That complete elimination from Colo
RADIO Fuel and Iron affairs would prove
the greatest factor in clearing the way
for q new understanding with labor, 1t
is added. has been an argument which
has found great weight with the Rookie
felled family and their allied interests.
The elder Rockefeller particularly has
sought this new understanding.
Benefit To Hill Interests.
Regardless Of the labor aspect Of the
situation. however, the acquisition, of
the Colorado Fuel and Iron Company
by the Hill interests for union with the
Great Northern Ore will provide each
company with advantages which neither
couNi obtain working alone. and will
further rebound to the benefit Of the
great Hi! railroad properties through
with the advantages which the pres
ent Hill properties should afford to
the Colorado Fuel and Iron. the latter
will bc able to offer against Eastern
steel and iron companies q vigorous
competition OF far. Western trade. it's
natural territory for sales operations.
which it has seldom been able to main
tain under the Rockefeller regime.
The United States Steel Corporation
and other great Eastern producers have
gone to the extent Of treating far West
use the steel trade expression. selling
their products along the Pacific coast
at the same prices at which they would
sell those products In territory abroad.
often below the prices charged domestic
manufacturers in the East. and the
Colorado Fuel and Iron has had but
little success IN meeting this ygo5oTs
bilities Of the vast deposits OF the Great
Northern Ore opened up to 1t. the Colo
rado Fuel and Iron is expected not only
to meet this competition visorously. but
the Eastern mills for the trade Of Aus
tralia. China. Russia and Japan.
Shows Big Possibilities.
Already the war has shown the pos
abilities Of the latter fields for the
company through the orders which
have reached 1t in large volume from
Russia for rails and other railroad
As for the Great Northern Ore. while
Its shipments to the Colorado Fuel
and Iron properties and the conse-
Quent development Of far Western
business generally will accrue to the
benefit of the Hill railroad lines, the
latter lines would get comparatively
little benefit should the mass Of Great
ern mills.
Since the cancellation Of the famous
lease of the Great Northern Ore prop
critics by the United States Steel Cor
against the latter. several large steel
properties have had an eye on the
Great Northern Ore. including the
Wa stest stes SesrS 20 time
the Bethlehem might take over the
Great Northern Ore and the Colorado
Fuel and Iron. thereby supplying steel
to It's own great shipyards and other
Ing Its present high cost Of freight ton
mage for steel from the plant at Beth
lehem. Pa. across the continent ol
through the Panama Canal
Whether Charles NJ. Schwab. the
genius of the Bethlehem's operations
ever fully, relinquished that idea, II
view Q6this heavy acquisition Of iror
ore properties IN Chile. has never beer
fully determined. There are many stee
men who would not be surprised finall,
to see his hand show in the presen
moves by James j. Hill.
Kuhn, Loeb & Co. Takes Part.
HIS visit to New York this week
while ostensibly in connection witt
the European loan negotiations. wa
primarily made, 1T Is known. in con
nection with the steel and ore nego
tiations in which the firm OF Kuhn
Loeb & Co. has been taking an i'm
portant part. 1t will be recalled tina
after Hill saw Jacob II. Schiff, senio
member of that Arm. he expressl
made II known that the visit to Schif
was not In connection with the Euro
pean loan, but other matters.
The methods of secrecy usual Il
large mergers have been followed 4
this instance by the financial heads
but one inkling of the transaction
has been furnished the speculative
community by the heavy trading whicl
occurred in the stocks OF both tn