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Commercial
October 12, 1906
Event 2 of 2
The Sisseton Weekly Standard
Sisseton, Roberts County, South Dakota
What is this article about?
The United States Steel Corporation announced a long-term lease of James J. Hill's Northwest iron ore properties on a royalty basis, securing millions of tons for 50 years. Terms include escalating prices starting at $1.05/ton and minimum annual extractions. Deal finalized in New York on Oct. 7, 1906.
Clipping
OCR Quality
98%
Excellent
Full Text
This is Event 2 of 2. The full text below covers all events in this component.
STEEL TRUST GETS HILL ORE LANDS.
LEASE BASED ON SYSTEM OF ROYALTIES PUT THROUGH IN NEW YORK.
IS PRACTICALLY PERPETUAL.
New York, Oct. 7. The terms of the lease of the Hill ore properties in the Northwest to the companies controlled by the United States Steel corporation were announced yesterday by E. H. Gary, chairman of the board of directors of the corporation. The terms are based on a system of royalties and give no indication of the amount of ore to be taken out of the lands, except to show that it is expected to be many millions of tons. The price to be paid for the first year of the lease is $1.05 per ton delivered at upper lake ports, but this price is to be increased three-fourths of a cent per ton in each succeeding year until the ore lands shall have been exhausted. It is provided also that the United States Steel corporation must take at least 750,000 tons in 1907 and increase the amount by 750,000 tons a year for eleven years, until the amount mined annually has reached 8,250,000 tons, at which rate it must continue to take out the ore annually until it is exhausted.
Lease Practically Perpetual.
The lease of the ore land properties is practically perpetual, since it holds until the ore has been exhausted. The final agreement was reached at a conference in the office of J. P. Morgan & Co. at which there were present James J. Hill, J. P. Morgan, Charles S. Steele, George W. Perkins, Judge E. H. Gary and the legal representatives of the interests concerned. The magnitude of this transaction and its effect on the properties concerned, as well as upon the iron and steel trade of the country, is indicated by the fact that the Hill properties have been estimated to contain from 400,000,000 to 700,000,000 tons of ore.
Ore for Fifty Years.
The properties included in this transaction are said to be second in importance and extent only to the Lake Superior iron mines already controlled by the United States Steel corporation, and it is said that this deal will furnish the steel corporation with a supply of ore for the next fifty years. The Hill properties included within this lease are believed to comprise a number of properties owned in part by other interests than those controlled by James J. Hill, but the ownership of which was shared with his interests.
LEASE BASED ON SYSTEM OF ROYALTIES PUT THROUGH IN NEW YORK.
IS PRACTICALLY PERPETUAL.
New York, Oct. 7. The terms of the lease of the Hill ore properties in the Northwest to the companies controlled by the United States Steel corporation were announced yesterday by E. H. Gary, chairman of the board of directors of the corporation. The terms are based on a system of royalties and give no indication of the amount of ore to be taken out of the lands, except to show that it is expected to be many millions of tons. The price to be paid for the first year of the lease is $1.05 per ton delivered at upper lake ports, but this price is to be increased three-fourths of a cent per ton in each succeeding year until the ore lands shall have been exhausted. It is provided also that the United States Steel corporation must take at least 750,000 tons in 1907 and increase the amount by 750,000 tons a year for eleven years, until the amount mined annually has reached 8,250,000 tons, at which rate it must continue to take out the ore annually until it is exhausted.
Lease Practically Perpetual.
The lease of the ore land properties is practically perpetual, since it holds until the ore has been exhausted. The final agreement was reached at a conference in the office of J. P. Morgan & Co. at which there were present James J. Hill, J. P. Morgan, Charles S. Steele, George W. Perkins, Judge E. H. Gary and the legal representatives of the interests concerned. The magnitude of this transaction and its effect on the properties concerned, as well as upon the iron and steel trade of the country, is indicated by the fact that the Hill properties have been estimated to contain from 400,000,000 to 700,000,000 tons of ore.
Ore for Fifty Years.
The properties included in this transaction are said to be second in importance and extent only to the Lake Superior iron mines already controlled by the United States Steel corporation, and it is said that this deal will furnish the steel corporation with a supply of ore for the next fifty years. The Hill properties included within this lease are believed to comprise a number of properties owned in part by other interests than those controlled by James J. Hill, but the ownership of which was shared with his interests.
What sub-type of article is it?
Economic
What keywords are associated?
Ore Lease
Steel Corporation
Hill Properties
Conference
What entities or persons were involved?
E. H. Gary
James J. Hill
J. P. Morgan
Charles S. Steele
George W. Perkins
Where did it happen?
New York
Commercial Details
Location
New York
Event Date
Oct. 7
Key Figures
E. H. Gary
James J. Hill
J. P. Morgan
Charles S. Steele
George W. Perkins
Notable Details
- final agreement at j. p. morgan & co. office
- magnitude affects iron and steel trade