e. j. korvette , also known as korvettes , was an american chain of discount department stores , founded in 1948 in new york city .

it was one of the first department stores to challenge the suggested retail price provisions of anti-discounting statutes .

founded by world war ii veteran eugene ferkauf and his friend , joe zwillenberg , e.j. korvette did much to define the idea of a discount department store .

the company failed to properly manage its business success , which led to decline and its 1980 bankruptcy and closure .

e . j . korvette

fact check : e . j . korvette - - eight jewish korean war veterans ?
what were they thinking # 25 e . j . korvette’s goes beyond what they knew
jewish currents | november 13 : eugene ferkauf and e . j . korvette ( s )
corsair photo electric exposure meter with case from e . j korvette ' s c . 1970
eugene ferkauf , founder of e . j . korvette chain , dies at 91 - the new york times
what were they thinking # 25 e . j . korvette’s goes beyond what they knew | that 401k site
and that’s where the legend of e . j . korvette and its founder , eugene ferkauf , really began .
used to buy albums from e j korvettes on goucher boulevard in towson , maryland .
christmas shopping at the e . j . korvette store in new york ; operation christmas s . . . hd stock footage
christmas shopping at the e . j . korvette store in new york ; operation christmas s . . . hd stock footage - youtube
i recall going to at least one e . j . korvette in the st . louis area , when i was a kid .
i also remember korvette having a fantastic record department which was generally better than anything around . in fact i bought my first record with my own money at e . j . korvette .
claim : the discount chain e . j . korvette took its name from a shortening of ‘eight jewish korean war veterans’ in honor of its founding partners .
q . : did the name of the old e . j . korvette department stores actually stand for ' ' eight jewish korean war veterans ' ' ?
did you know that e . j . korvettes stood for eight jewish korean war veterans ? thats a fact .
e . j . korvettes does not stand for eight jewish korean war veterans . it is an urban legand .
the e . j . korvette store in bath beach , brooklyn , in 1967 . prices at the nominally membership - only stores were 10 to 40 percent below more conventional competitors .
2 . the one i like to believe , but i don ' t think it ' s true - e . j . korvette = eight jewish korean ( war ) vets .
he also made no secret of how he came up with the name e . j . korvette . the “e” comes from the first letter of his first name , the “j” from that of joe swillenberg , an old tilden friend who became a top company executive . korvette is a deliberate misspelling of corvette , a reference to a class of naval ship , not the car .
to this day , e . j . korvette was my favorite discount store chain . i loved working and shopping in korvette ' s . possibly some of you remember that game show host bill cullen became their spokesman on tv ads at the time .
i have a pair of xam speakers here in silverton , oregon about as far from any e . j . korvette store as you can get and i bought them local . wonder where they been .
in 1977 . ten years later , t . j . maxx was acquired by
so there you have it . e . j . korvettes does not stand for eight jewish korean veterans , not does it stand for eleven jewish korean veterans .
hard work and business acumen parlay this humble beginning into an empire . the eight jewish korean veterans go on to live deserved lives of luxury as their chain , e . j . korvette , succeeds beyond their wildest dreams .
e . j . korvette ( initially a retailer of leather goods ) was founded in 1948 , two years before the korean war began , by a jewish world war ii veteran named eugene ferkauf . ferkauf explained the nomenclature thusly :
when this theater was built it was an expansion of the e . j . korvettes shopping center . and “e . j . korvettes” was not a person’s name , but rather , stood for “eight jewish korean war veterans” — that is , eight jewish army buddies who founded the shopping complex after their returning back home from the korean war .
e . j . korvette name origins according to korvette ' s founder , eugene ferkauf , who died on june 5 , 2012 , the name
e . j . korvette
was coined as a combination of the initials of its founders ( eugene and joe ) and a re - spelling of the naval term corvette , a nimble sailing warship and later world war ii sub - destroyer . ferkauf ' s claim and the name pre - dating the korean war by three years contradict an urban legend it was an acronym for
eight ( or eleven ) jewish korean war veterans
.
eugene ferkauf , the founder of the e . j . korvette chain of discount department stores , whose 1950s strategy of low prices , quick turnover and high volume helped shape today’s retail landscape , died on tuesday at his home in manhattan . he was 91 .
i had a name picked out for the store , e . j . korvette . “e” is for eugene , my first name , and “j” stands for joe swillenberg , my associate and my pal . as for “korvette , ” it was originally meant to be spelled with a “c” after the canadian marine sub - destroyer , simply because i thought the name had a euphonious ring . when it came time to register the name , we found it was illegal to use a naval class identity , so we had to change the spelling to “k . ”
“i had a name picked out for the store , e . j . korvette . ‘e’ is for eugene , my first name , and ‘j’ stands for joe swillenberg , my associate and my pal . as for ‘korvette , ’ it was originally meant to be spelled with a ‘c’ after the canadian marine sub - destroyer , simply because i thought the name had a euphonious ring . when it came time to register the name , we found it was illegal to use a naval class identity , so we had to change the spelling to ‘k . ' ”
kenny miller paid no attention to my comment on the waldbaums ' website so i ' ll pay no attention to the rules on the e . j . korvettes site . i ' m a rebel !
thanks to its discounting , e . j . korvette’s expanded into the suburbs of new york , philadelphia , detroit , and chicago . they expanded the products they sold by initaly subcontracting sales of home furnishings , furniture , and carpet . the problems with e . j . is when they decided to end the practice of subcontracting sales and get into the business of selling furniture , fashion , carpet , and household goods . the problem is that korvette’s had no idea how to sell these products and they failed to focus on their bread and butter : appliances and electronics .
korvette - wikipedia . e . korvette , also known as korvettes , was an american chain of discount department stores , founded in 1 . new york city . it was one of the first department stores to challenge the suggested retail price provisions of anti - discounting statutes . korvette did much to define the idea of a discount department store .
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eugene ferkauf sold his share in the e . j . korvette chain ( which then encompassed 45 department stores and 60 supermarkets ) for more than $ 20 million in 1966 . the company went out of business in the early 1980s , and ferkauf passed away in 2012 at the age of 91 .
when mr . ferkauf sold his share in e . j . korvette in 1966 for more than $ 20 million , the company had 45 department stores and 60 supermarkets . it went out of business in the early 1980s . mr . ferkauf gave much of his fortune to cultural and jewish charities .
? in one scene we see peggy return from a curtain shopping expedition with a bag from e . j . korvette ; later , megan and her mother board the elevator with an armload of boxes and a bonwit teller bag . at first glance these might seem like arbitrary props , but like any of
in the history of american retailing , the e . j . korvette story is a fairly brief chapter . this brevity does not do justice to the tremendous , arguably unparalleled influence the company and its visionary founder , eugene ferkauf , wielded during its halcyon years – the mid - fifties through the early nineteen - sixties .
e . j . korvette was founded in 1948 ( two years before the korean war ) by a jewish world war ii veteran named eugene ferkauf . ferkauf explains the nomenclature thusly : â€œi had a name picked out for the store , e . j . korvette . â€˜eâ€™ is for eugene , my first name , and â€˜jâ€™ stands for joe swillenberg , my associate and my pal . as for â€˜korvette , â€™ it was originally meant to be spelled with a â€˜câ€™ after the canadian marine sub - destroyer , simply because i thought the name had a euphonious ring . when it came time to register the name , we found it was illegal to use a naval class identity , so we had to change the spelling to â€˜k . â€™â€
september 2 . 01 . 3 ) . korvette took its name from a shortening of .
ej korvette was a chain of discount department stores founded in 1948 and closed in 1980 .
electronic discount retailing , also called e - tailing ; sells at discount prices over the internet ; large assortment of merchandise ; good service ; generally delivered by mail or parcel service ( e . g . , amazon . com ) .
moderate width and very low depth of assortments ; average to good quality ; lower continuity ; low prices ; little atmosphere and few services ; some limited promotion ( e . g . , t . j . maxx and burlington coat factory ) .
last year saw the passing of one of the most influential figures in retailing history , one who deserves more recognition than he receives today , i’m afraid . eugene ferkauf , founder of the legendary e . j . korvette chain of promotional department stores , passed away on june 5 , 2012 in new york city at the age of 91 .
the roots of the company name itself extend to ferkauf’s brooklyn boyhood . “e . j . ” stands for eugene ( ferkauf ) and joe zwillenberg , friend and korvette employee from the very beginning , and “korvette” is inspired by the corvette , a class of world war ii warships operated by the royal canadian navy . a popular , and false , story behind the name’s origin soon arises - that e . j . korvette stands for “eight jewish korean war veterans . ” ( where the myth started remains a mystery , but it endures to this day . evidence of that turned up in nbc nightly news’ report on ferkauf’s passing , where brian williams made mention of it and briefly outlined the name’s true origin . personally , i was just delighted to see the story covered on network news . )
looks like the spur track off the northernmost track just west of the floral park station leading to the
warehouse
buildings shown in this map ( nos . 3 , 4 , and 5 ) . legend says the warehouses were e . j . korvette co . and kingsway plumbing supply co . : urltoken . . . 7 - 1958 . jpg
korvette ' s decline has been generally attributed to inconsistent or poor management . by 1966 , korvette ' s merged with spartan industries as spartan’s management tried to turn the chain around , but by 1971 korvette again changed hands and was owned by arlen realty . they failled miserably at running korvette as by 1980 they had run the chain into the ground ! i was especially sad to see them go .
e . j . korvette was an american chain of discount department stores , founded in 1948 in new york city . it is notable as one of the first department stores to challenge the suggested retail price provisions of anti - discounting statutes . it is also notable for its failure to manage its business success which led to decline and its 1980 bankruptcy and closure .
never heard of , or shopped at , a korvette discount store and now no one ever will .
p . s . to ltot : e . j . korvette’s showed up somewhere between ‘55 - ' 56 or so . used to buy my hardcover ( w / dust jacket ) hardy boys books there for a whoppin’ 88 cents ! and lps were sold at a decent price in the early ‘60s , like $ 2 . 94 each . not too shabby fo’ us po ' folk…
a couple of their stores had a grocery department which later became hills korvette . the store brands was food club , topcare , hills , hills korvette , and pantry pride which also took over in the mid 70s .
a major hassle occurred when korvette’s longtime furniture lessee , the h . l . klion company , imploded . lacking the infrastructure to cope with korvette’s continuous expansion and crippled by two labor disputes , klion’s furniture deliveries became hit - and - miss , resulting in a whopping $ 2 million in customer order cancellations in 1964 , many of those with custom - ordered upholstery . the crux of the matter , of course , was that the signs all over the department read “e . j . korvette” , ( the customers most likely never even heard of klion ) , so ferkauf and company were compelled to act in order to preserve korvette’s good name and to attempt to ameliorate the damage . in august 1965 , korvette took over the klion operation , and around the same time bought out their carpet lessee , the federal carpet company , as well .
given its size and scope , wal - mart’s ultimate demise may seem inconceivable , but the death of a bargain retailer is not unprecedented . > from the original giant retail empire founded by frank woolworth in utica , n . y . , in 1879 to regional powers such as new york’s e . j . korvette and pennsylvania’s fisher’s big wheel , many discount retailers have been discarded into history’s dustbin .
korvette is a 72 - store retail chain that operates only in quebec . they are not related with the former
was a discount department store ( not unlike a modern - day wal - mart or target ) , so it makes sense that ever - sensible peggy would do her shopping here . the e . j . korvette chain ( also known as korvette’s ) was founded in new york city in the late 1940s with a store on third avenue and 45th street . the chain grew rapidly in the 1950s and 60s , peaking with a total of 58 retail locations in various parts of the country . korvette’s focused primarily on the suburbs , placing many of its discount superstores in strip malls and areas which were easily accessible from major highways .
j hyde : dallas galleria is not as upscale as it used to be . i haven’t been there in years…but can tell by the . . .
the company was e . j . korvette’s and they started with a store in manhattan that sold luggage , household appliances , and some jewelry . their prices were a third off retail and the way they ran around the anti - discounting laws on the books was creating a “membership” program that handed out membership cards so that the stores could be treated as a retail cooperative , thereby skirting the anti - discounting laws .
well , i ' m happy to report that the
korvette
name is still alive and well . . .
stone , kenneth e . ( 1995 ) . competing with the retail giants : how to survive in the new retail landscape . new york : wiley .
the year 1962 was a momentous year in discount retailing . kmart ( reincarnated from an 1899 five and dime store chain , itself modeled after woolworth ) , wal - mart , and target were all founded that year , as was woolco , woolworth ' s discount division . none of these was the discount store pioneer , having been preceded by e . j . korvette , mammoth mart , zayre , and vornado , among others .
the painting is a very accurate portrayal of the logo , which i agree looks great . they later dropped the
e . j .
and added an
s
at the end to just say
korvettes
on the storefronts in a fairly plain lettered logo . the script was much more interesting .
the end of alexander ' s highlights the extraordinary difficulties the retail industry has had in the new york area . some of the proudest names in the business have closed in the last decade - - gimbels , b . altman and may ' s , as well as ohrbach ' s , s . klein and e . j . korvette . others , including bloomingdale ' s and macy ' s , filed for bankruptcy , but survived .
this is a cool old 8mm reel and case . the tin case bares the name e . j . korvette which is a long gone department store . the 7 inch reel bares the name compco corp and has a 400 foot capacity . both are in great condition . the case does have one small ding in it but it does not affect the function . please use the zoom feature for a closer look . e . j . korvette , also known as korvettes , was an american chain of discount department stores , founded in 1948 in new york city . in 1980 , they declared bankruptcy and on december 24 , 1980 , they closed all of their remaining 17 stores . depending on location actual shipping charges may be less and difference will be refunded upon shipment . check out the audio \ film \ photography section for other cool items urltoken ; _ id = 20085831 from a smoke free home
korvette’s was one of the original anchor stores at the northway mall . it was on the farthest east side of the mall .
in the fall of 2008 , i wrote a series of short posts on the history of e . j . korvette . i’ve received many responses via site comments and emails from folks who worked at korvette since the posts first appeared , and over the years they’ve continued to come in . for quite a few of them , it was one of their first jobs , where they worked in high school or college . some worked there for just a year or two , yet looking back now from their late fifties or sixties , virtually all consider their tenure at korvette to be among their happiest experiences . if their stories are any indication , it’s safe to say that ferkauf was very well - liked and respected by his employees .
to get around fair - trade laws ( price maintenance ) intended to protect small store owners , ferkauf declared korvette a membership organization , not a retail store . the store did not invoke a fee like today’s sam’s club , costco , and others . membership cards were handed out to every single shopper who came through the doors . this approach enabled him to persuade distributors to sell him wholesale merchandise at a discount . throughout the 1960s to 1970s , the chain expanded the number of stores and product offerings . ferkauf sold his share in e . j . korvette in 1966 for more than $ 20 million . by that time , the company had 45 department stores and 60 supermarkets . korvette cities measured a whopping 200 , 000 - plus square feet and consisted of a “promotional department store” with an adjoining korvette supermarket , furniture / carpet center , and tire store .
mr . beach continued :
it is the same elevation as main street at the richardson on the corner of temple street . it was envisioned as an extension of the main street retail center that included g . fox , sage - allen , brown thomson , e . j . korvette and others . there was to be a land bridge joining the two centers . it was to go down temple street , from main street to the plaza ' s clock tower .
but it proved to be a disaster from the start , with zero personal compatibility between ferkauf and hilliard coan , hills’ former chairman , and their respective teams . with coan installed as chairman and ferkauf as president and ceo of the combined organization ( still under the name e . j . korvette , inc . ) , things bumped along uncomfortably for just over a year . it all came to a head in may 1966 , when coan tried to force ferkauf out of the company .
korvette also led the charge toward building in suburban locations , often arriving ahead of their department store competitors , including macy’s and gimbels . by the early 60’s , the company was building huge 200 , 000 - plus square feet “korvette cities” , consisting of a “promotional department store” ( they avoided the term “discount store” like the plague ) with an adjoining korvette supermarket , furniture / carpet center and tire store .
boone , louis e . , and kurtz , david l . ( 2004 ) . contemporary marketing ( 11th ed . ) . mason , oh : thomson south - western .
my mom worked at hills supermarket in woodbridge , nj e . j . was seperated by the outdoor home improvement section that looks identical to the one in the picture ! is that woodbridge , nj ? i got my aurora ho slot cars there , my 5 sp . iverson muscle bike and the 1st monkees album there etc . . great memories and those pretzels yum
but korvette ' s was innovative in avoiding the anti - discounting provisions of the robinson - patman act , and undercutting the suggested retail price on such expensive items as appliances and luxury pens . korvette used . in doing so , korvette ' s was able to accept deep discounts from suppliers , something that competing department stores , such as macy ' s and gimbels , could not do . in fact , macy ' s and others filed numerous . the lawsuits helped korvette ' s by calling attention to prices so low that competitors thought them illegal . founder eugene ferkauf attributed his idea for membership cards and deep discounts to luggage wholesaler charles wolf . korvette store was located between third and lexington avenues on 4 .
he keyed in on the entertainment culture like no one else . it was reported that one of the eulogists at ferkauf’s funeral related the story of buying his first beatle record at e . j . korvette . no doubt this story rings true for legions of record - buying fans ( of the beatles and every other artist imaginable ) in those years . he hired a record producer , david rothfeld , to run the operation , and throughout the 1960’s and beyond , korvette easily had the top - selling record departments of any mass - marketer in the country . rothfeld’s group also developed a hugely successful electronics line under the house brand “xam” . ( if you’re curious as to what that stood for , it was “max” spelled backwards . max was korvette’s audio equipment buyer’s cat . now you know . )
his solution was to declare korvette a membership organization , not a retail store . this enabled him to persuade distributors to sell him wholesale merchandise at a discount , which he would then further discount . members had only to show membership cards that korvette passed out in front of its stores .
northway’s anchors were ej korvette ( later something else ) , jo - ann fabrics , kids “r” us , lechmere , wards , and steinbach .
of note was e . j . korvette ' s venture into the home entertainment business . the retailer established a rather out of context series of high - end audio salons within selected stores . korvettes went so far as to market its own
xam
brand of stereo receivers , amplifiers ( some manufactured by roland electronics of japan ) , television sets , and speakers . at a number of the retail locations the audio department was , on dollar per square foot basis , one of the more profitable departments in the store .
in 1979 , korvette’s was purchased by the french corporation agache - willot group . initially , they closed korvette’s least profitable stores and began selling off merchandise , fixtures , equipment , and real estate . in 1980 , they declared bankruptcy and closed the remaining 17 stores in december of that year .
from 1971 to 1979 , korvette ' s was owned by arlen realty , a land development company that used korvette ' s 50 stores as a source of cash flow . under arlen ' s ownership , korvette ' s stores deteriorated and lost market share relative to other retailers to the point that the company was worth more for its real estate assets ( such as its ownership or leasehold interests in valuable locations ) than its retail sales . during this period , new york area korvette ' s stores advertised heavily on local television , using popular game show host bill cullen as a spokesman .
broad , but inconsistent , assortment of general merchandise and apparel ; low prices ; little atmosphere and service ; some limited promotion ( e . g . , big lots and tuesday morning ) .
i grew up hearing that e . j . korvette was supposed to have stood for the words ,
eight jewish korean veterans
, but found out years ago that this representation of the original owners was an urban legend . the truth was that the founders eugene ferkauf and joe zwillenberg created the name from a combination of their first name and a change in the spelling of a naval term corvette , which was the name of a canadian marine sub - destroyer used in world war ii . i think one of their contributions or defects depending on which side you come down on , is that korvette was one of the chains that led the fight for openly testing sunday closing laws !
the concept of contemporary discount retailing is often credited to e . j . korvette’s , an east coast retail chain that operated between 1948 and 1980 . however frank woolworth ( f . w . woolworth ) “was the pioneer of price - driven retail , building an empire founded on chain stores and volume retailing . sam walton ( wal - mart ) applied its concepts with his own twist . walton’s example influenced many other great leaders and the development of their companies , including ray kroc ( mcdonald’s ) , bernie marcus and arthur blank ( home depot ) , and howard schultz ( starbucks ) .
in the early sixties , ferkauf found himself the subject of a fair amount of media attention as his company ascended . by all appearances , e . j . korvette looked to be on the verge of breaking out into a national chain . as the decade rolled on , however , things changed drastically – the company ran into trouble , the dreams were scaled back , and with ferkauf’s departure in 1968 , “korvettes” ( as it was then officially known ) began to wane rapidly . his influence continued , but more on the discount industry as a whole rather than on the company he founded .
the original anchors at mohawk mall were j . m . field ( replaced by bradlee’s ) , a pantry pride grocery - store annex to j . m . field ( replaced by price chopper ) , woolworth’s ( replaced by marshall’s ) , the boston store ( replaced by media play ) , and montgomery ward . there was originally a two - screen cinema at the mall , which eventually expanded to three and then seven screens .
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in 1979 , korvette ' s was purchased by the agache - willot group of france , which initially closed korvette ' s least profitable stores and began selling off merchandise , fixtures , equipment , and real estate . in 1980 , they declared bankruptcy and on december 24 , 1980 , they closed all of their remaining 15 stores .
my husband and i were just looking through a drawer of old items and found the e . j . korvette , inc . , badge he had when he was in security at the store in bethesda / rockville maryland in the mid 60 ' s . i wanted to find out if korvettes still existed and found this site . we used to go to that store when were married in 1965 until we left in 1971 . congratulations to the ferkauf ' s on their accomplishments , and a belated happy birthday to you sir ! ! ! hope you and your wife have many more years together !
when its customers began moving out of the city , alexander ' s moved with them , establishing beachheads in white plains and paramus , n . j . , offering middle - class shoppers quality goods at bargain prices .
according to former korvette vice president eve nelson , ferkauf was prone to “crushes” on companies , an assertion well supported in his 1977 autobiography “going into business : how to do it , by the man who did it” . ( half korvette history , half tutorial for aspiring retailers , it’s a fun and informative read . ) from the moment korvette hit the big time in the early 50’s , it seems he was constantly involved in merger talks with one firm or another , often multiple companies at once .
the look of discount stores also began to change in the 1950s as leading discounters ( e . g . , masters , two guys , korvette ) took on a department - store - like appearance by adding household goods , apparel , and other soft goods .
mill store
discount operations further contributed to this change as they began to surface with their base of soft goods .
korvette played a major role in the downfall of “fair trade” laws – where goods manufacturers were allowed to set retail prices ( today’s laws only allow them to “suggest” prices ) . to a large extent , these laws protected traditional department stores , who sold at typical 40 % markup versus the discounters who often sold at margins of 20 % or less . on hundreds of occasions , korvette was sued by manufacturers for undercutting their mandated prices . korvette’s response in nearly every case was to switch to a different manufacturer of the same product . the court cases also resulted in a ton of free publicity for korvette , burnishing their image as an advocate for the poor , hapless , overcharged consumer .
packard , e . j . korvette , rca , drexel burnham lambert , pabst , schwinn . once industry leaders , these companies all suffered devastating setbacks because of one pivotal mistake . sobel portrays 15 glaring and enlightening product flops and management foibles . he reveals the histories and management philosophies of the companies involved , the alternative courses of action available to ( and recognized by ) the managers at the time , and the reasoning behind the crucial choices that were made . in the process , he shows business professionals how they can learn from the mistakes of their predecessors , and guide their own companies onto the path of prosperity .
between 1966 and 1980 , korvette’s was dying and through a number of transactions , started to close stores and exit locations until they closed their last 17 stores in december 1980 . korvette’s was a pioneer in discounting , but losing focus of what they sold best and trying to be the next department store was a disaster that led to its closure .
originally , the shopping center was typical of the strip malls that grew up along roads like central park avenue after world war ii , as more people moved to the suburbs , said malachy kavanagh , a spokesman for the international council of shopping centers , a trade organization based in manhattan . those first strip malls were service - oriented and anchored by a grocery store , with a drugstore , beauty salon and dry cleaner part of the usual tenant mix . the midway ' s first tenants included e . j . korvette ; s . s . kresge ; datich shopwell , a grocery store ; miles shoes ; and sunray drugs .
i enjoyed reading your recollections of fulton st . , brooklynjim . i remember the stores that you mentioned including may’s although e . j . korvette was my favorite . it was affordable . i lived on stockton st . , off tompkins ave . and the myrtle ave . el was around the corner from me . i recall passing the peerless theate on my way to fulton st . but never went in there . it looked like a ‘dump’ although i am a ‘dump’ fan . frequented many in my day . however , the rko albee was the cream of the crop and i’ll always remember those enjoyable days i spent there .
in addition , improvement of operational efficiency is continually sought to control costs . modern discount stores may range from specialty shops ( such as discount bookstores ) to major discount chains that typically sell a wide variety of products including hard goods ( e . g . , major electronics , automobile supplies , toys , and small appliances ) , soft goods ( e . g . , apparel , bedding , and bath products ) , groceries , and other general merchandise .
moderate number of product lines but a low depth of assortments ; carry manufacturer ' s brands bought discount wholesale at very low prices ; limited atmosphere ; few services ; minimal promotion ( e . g . , cub foods ) .
in 1 . 95 . 6 , korvette ' s had six stores , including stores in philadelphia and harrisburg , pennsylvania . by 1 . 95 . 8 , it had 1 .
geeez… . no one has noticed the huge korvette ? ? ? ? ba - da - bum… . sorry had to say it . there were a few korvettes in the chicago area .
e . j . korvette , inc . was founded by brooklyn - born eugene ferkauf in may 1948 with a single , cramped second floor store in manhattan , where the main product sold was luggage . the store’s name ( contrary to the popular legend which said it stood for “eight jewish korean war veterans” ) was derived from ferkauf’s first initial along with that of joe zwillenberg , a childhood friend , who would join ferkauf in his new business . “corvette” was the name of a class of canadian naval ship . the name was modified in deference to canadian naval regulations of the era which apparently forbade commercialization of military nomenclature ( this was several years before general motors’ corvette ) .
the late author david halberstam , in his masterwork the fifties , an essential read for anyone interested in that decade’s massive effect on late 20 th century american culture – consumer , popular and otherwise , devotes an entire chapter to the rise of e . j . korvette . halberstam sets up a memorable scene : “as ferkauf looked at the potato fields of westbury , he experienced a vision of the new suburbia : a sparkling , huge new store with vast parking facilities . ” ( surely you’ve heard of “westbury potatoes” , just like idaho or maine potatoes , right ? well , no one else has either ; that’s why they built a shopping center on top of the place . )
he had no problem with quick decisions . on his second date with estelle silverstein , he presented her with a small suitcase engraved e . s . f . , explaining , “that’s what your name will be because you’re going to marry me . ”
yeah , i was surprised by the korvette store . i thought it was a new york thing . i don’t think pittsburgh ever had one , so i would not have expected one in illinois !
extensive width and depth of assortments ; average - to - good - quality products , often less fashionable ; very competitive prices ; average atmosphere and minimal services ; significant advertising ( e . g . , wal - mart , target , and kmart ) .
for the most part , ferkauf pursued the talks with a singular goal in mind : to bolster korvette in areas where it was weak , creating a combination where both parties brought complementary strengths to the table . in the early years , when korvette was strong in appliances and other hard goods but lacking in soft goods experience , he focused on department stores with an emphasis on fashion at discount prices .
i bought my first stereo there : a rolecor receiver ( korvette exclusive ) , xam speakers ( very bad ) and a garrard turntable ( genuine walnut grained vinyl ) , around $ 50 i think .
wow ! e . j . korvettes ! what a story . . . i even have a book entitled ' the rise and fall of e . j . korvettes ' . and , . . . i even worked at the ejk store in rockville , maryland from 74 thru 79 . shoes , sporting goods , stereos and tvs ( xam baby ! ) . what ever happened to marty agins , sal catellano , burke sommers , paul moduleski , reggie , ted , and other guys like steve abundi , paul moreno , shelby kaplan , chet bigelow , dave daggett , charlie miller , nan mullen , mark rubin , sandy ambert , kym densel , joe leotta , al nishi , kim biser , jack ilgenfritz , sherry wilkenson , loretta gruber , rick stein , dave dupree , lane mcconoughey , tom ricucci , tim bieber , sal triolo , denise munson , joanne wachsman , anita ambert , ralph gordon , shawn gordon , dale riley , jimmie vansopark , laura adkins , matt vieman , and that crazy dude in the blue security uniform . . . mike somebody .
korvette ' s expanded into the chicago , northern virginia , and detroit areas in the 1 . it successfully disputed the state and local sunday closing ordinances and laws . once those barriers were broken , many other retailers opened on sunday . decline and closure . korvette ' s venture into the home entertainment business . the retailer established a rather out of context series of high - end audio salons within selected stores .
it displaced earlier five and dime retailers and preceded later discount stores , like walmart , and warehouse clubs such as costco . korvette ' s founder , eugene ferkauf , began his discounting career in a 4 .
when visiting my grandparents in berwyn , i used to go to the korvette store at the corner of harlem & cermak at least once every visit . that place had everything , and a great toy department .
elizabeth arden ( elizabeth arden ) and estée lauder ( estée lauder ) pioneered the cosmetics industry for women , while j . c . hall ( hallmark ) created the greeting card industry into what we know it to be today , including the celebration of valentine’s and secretary’s day .
remember the korvette ' s store in arlington heights illinois on route 12 . just south on rand rd . was a turn style store . across the street was jack in the box on rand & palatine rd .
david - thanks so much , i really appreciate that . it ' s a shame , in a way , that korvette didn ' t make it out west , but they had a great influence over the entire industry , and no doubt the leaders of the big california discounters were following what korvette was doing . for sure , a side effect of the fair trade laws was the huge growth of knockoffs and off brands .
korvette was a wonderful company to work for ( 22 years ) unfortunately the stores were too big , the average store was 250 . 000 square foot , they could not do the sales to support such big stores
rossy is a korvette - like chain too with small discount stores in rural towns . they operate mostly in eastern canada . they sell clothing , furniture , seasonal , gifts , toys , home products and more .
sometimes referred to as value retailers ; limited assortment of foods and general merchandise ; caters to the lower - income market ; low prices ; little atmosphere and few services ; minimal promotion ( e . g . , dollar tree , family dollar store , and dollar general ) .
while the first e . j . korvette store was located on 45th street in manhattan , the first of the type of store i remember were opened in 1954 as the stores generally expanded into the suburbs . by 1956 , they had six stores , and eventually they maxed out at around 58 stores . the thing i remember about the one i went to in the st . louis area , was that it was a two story building with cashiers in individual departments like that of a department store . it also included a separate building which housed it’s own furniture store with commissioned salespeople . their furniture store took and delivered custom furniture orders of high quality furniture . korvette also included a full supermarket , a pharmacy and a large hardware department that even sold paneling . their clothing was generally a better grade than found at other discount stores of the time as korvette tried to compete with the department stores , but were never quite successful with the strategy . they also had a tire center and a leased pet department that i worked in . the pet departments located in korvette ' s sold full breed dogs , complete with papers . they also sold tropical fish , snakes , monkeys and tropical birds . on more than one occasion , there were monkeys and snakes that got loose and made their way around the store until they were caught . i don ' t think the store managers were ever to fond of the pet department !
ferkauf , who sold his korvette stock at the time of the transaction , stayed on briefly in a largely advisory role , but by 1968 he’d had enough and decided to retire . a historic chapter was now closed . sadly , in the midst of the tumult of korvette’s previous few years , harvard’s malcolm mcnair had removed ferkauf from his “greatest merchants” list . but i submit that he still belongs there , for several important reasons :
googled the following info below . come on guys this took about 5 minutes and i grew up using a slide rule . . . i went to google : found men on the move self - storage facility in floral park address , than to bing maps bird ' s eye view . matched this against the maps at : urltoken . . . alpark . htm 1958 siding for e . j . korvettes and kingsway plumbing supply lirr 1966 map universal millwork , h . berlind inc and kingsway plumbing supply h . berlind , inc . was engaged in the wholesale distribution of household goods and related products with its principal place of business at floral park , new york . found via google quiz : why did korvette need a rail siding and where did it ' s name come from ?
the sold merchandise was then shipped to delivery warehouses in east paterson and pennsauken , new jersey , and jessup , maryland for final prep and delivery . this well - managed furniture distribution group was active until it closed at the end of 1 . by 1 . 96 . 6 , korvette ' s had begun to decline and chose to merge with spartan industries , a soft goods retailer . eugene ferkauf was eased out of the company leadership , and spartan managers attempted to revive the company . from 1 . 97 . 1 to 1 . korvette ' s was owned by arlen realty and development corporation , a land development company that used korvette ' s 5 .
by 1966 , korvette ' s had begun to decline and chose to merge with spartan industries , a soft goods retailer . eugene ferkauf was eased out of the company leadership , and spartan managers attempted to revive the company .
as mentioned , by the mid - 60’s korvette’s “supermarket problem” had reached a critical point , but at the end of 1964 it seemed the solution lay right in korvette’s backyard . hills supermarkets , a long island - based operator of 40 - plus stores ( mostly located on the island ) was growing fast . best of all , they had recently opened a state - of - the - art distribution center smack dab in the middle of korvette’s core territory . the song of synergy , complete with harps and celesta , was in the air , and in february 1965 a merger between the two companies was consummated . nelson riddle couldn’t have arranged things better , it seemed .
1945 ) , discount merchandising grew rapidly . this explosion in growth was fueled by consumer bargain hunting in the face of rising prices , the pent - up demand for goods created by wartime shortages , and the establishment of homes and families by returning gis . many consider e . j . korvette , opened in 1948 by eugene ferkauf , as the first discount store . soon regional discount stores , such as zayres , arlans , gibson ' s and two guys , sprang up across the country to satisfy the demand for consumer goods , including television sets and other new products . many of these new discounters sold their merchandise out of other existing businesses or set up in low - cost facilities such as abandoned factories and lofts . despite these often makeshift origins , the modern discount industry was beginning to take shape .
i never worked at any of the stores but i used to walk to the store at 87th & cicero in oak lawn , il . i bought my first records , both 45 ' s and lp ' s at this store . actually , i probably bought every lp between 1965 and 1979 at korvette ' s . my first credit card was from korvette ' s in 1975 because i couldn ' t get one from sears . i bought a new 19
color tv for myself and my new wife for our new apartment . now that i think about it , i ' ll bet i did all of my shopping at korvette ' s until it closed in 1980 .
ferkauf , still korvette’s largest stockholder by a wide margin , hastily put together a meeting with his friend charles bassine , the chairman of spartans industries , inc . , with the goal of merging the two companies . the net effect , of course , would mean a shift in the balance of power at korvette . spartans operated two discount department store chains , spartan and atlantic mills . they also owned a huge garment manufacturing operation in tennessee ( bassine’s original business ) , which annually churned out zillions of men’s sport shirts ( connoisseurs’ items for today’s thrift - shopping hipsters ) and other clothing items for their own discount stores and just about everyone else’s . in just about a month , the deal was done . korvette was now a division of spartans industries , and coan and his deputies were shown the door . the hills / korvette food stores would soon be sold off altogether , most to pueblo supermarkets .
owned and operated by the manufacturer ; often located in outlet malls ; moderate width but poor depth of assortment ; some irregular merchandise ; lower continuity ; very low prices ; some atmosphere and service ; some promotion ( e . g . , bass , levi ' s , and totes ) .
those enthralled by the rumor found its premise quite plausible in view of korvette’s emergence in the post - korean war , the prevalence of jewish entrepreneurs in the retailing industry , and the fact that the chain did initially employ a number of the founder’s army buddies . besides , no one had ever heard of a mr . korvette associated with this discount chain of appliances and general merchandise , which lent credence to the idea that the name must have been coined .
mass merchandising . the first type of mass - merchandising operation was the department store . the second was the chain store , which included variety stores and
junior department stores .
the third was the mail - order house . these patterns for mass merchandising remained relatively constant through the 1920s . the genesis of discount retailers , known as
undersellers ,
also occurred in the early 1900s . s . kline ( 1912 ) , j . w . may ( 1924 ) , and alexander ' s ( 1928 ) were the early undersellers of soft goods ( e . g . , apparel ) .
often referred to as wholesale clubs ; charge a modest membership fee ; broad assortment of food and nonfood items ; lower continuity ; low to very low prices ; some atmosphere and service ; some promotion ( e . g . , costco , sam ' s , and bj ' s wholesale ) .
during this period , new york area korvette ' s stores advertised heavily on local television , using popular game show host bill cullen as a spokesman . in 1 . 97 . 9 , korvette ' s was purchased by the agache - willot group of france . in 1 . 98 . 0 , they declared bankruptcy and on december 2 . ferkauf ' s claim and the name pre - dating the korean war by three years contradict an urban legend it was an acronym for .
small appliances ( sold at very low markup ) were soon added to korvette’s product mix , and after only two years sales passed the $ 2 million mark . by 1957 , nine years after its founding , sales were at $ 71 million , and only five years later were over $ 237 million . by the end of the 50 ' s , korvette had begun to place a huge emphasis on clothing and and other soft goods , which helped fuel the company ' s rise .
arguably it was the opening of korvette’s fifth avenue store in new york city , on march 15 , 1962 , that prompted the brightest spotlight on ferkauf and his company . though untypical in many ways – a stately , seven - story roman columned building in the heart of manhattan’s toniest shopping district as compared to korvette’s standard sleek , sprawling suburban shopping cities ( need more “s” words , there , don’t you think ? ) – the sheer boldness of the move caught the media’s fancy .


the polymet mine or northmet mining project is a proposed mining and processing operation in the northmet deposit in northeastern minnesota .

the project is controversial with potential environment effects being a major concern .

polymet mine

minnesota health experts agree : a health impact assessment of the polymet mine plan is needed .
northmet water modeling package , large table 3 ( mine site ) : groundwater data summary – mine site surficial aquifer ; large table 4 ( mine site ) : groundwater data summary – mine site bedrock ; large table 5 ( mine site ) : groundwater data analysis – mine site surficial aquifer ; and large table 6 ( mine site ) : groundwater data analysis – mine site bedrock , december 2014 .
polymet ' s proposed mine in northeast minnesota would generate water pollution for up to 500 years .
polymet’s sulfide mine proposal is currently in a public objection period . click here to send your objection .
polymet mine opponents to lay out objections to new review - kstp - press conference regarding polymet held at senate office bldg . 11 / 13 / 2015
• march 27 : enviro groups ' latest suit slams ' sweetheart ' polymet deal • jan . 9 : forest service oks land swap for proposed polymet mine
polymet mine site groundwater model calibration and predictions , great lakes indian fish and wildlife commission , jun 2015 .
the group duluth for clean water on tuesday reiterated its call for a contested case hearing on the permit to mine for the proposed polymet copper mine near hoyt lakes .
the plaque shown below is on display at the flambeau mine site . it describes the flambeau mine as ‘the newest and smallest copper mine in the world . ’ if they couldn’t get it right at ‘the newest and smallest copper mine in the world , ’ how are they going to get it right at the much larger mine proposed by polymet ?
should polymet’s proposed mine be compared to the flambeau mine ? , stephanie hemphill , minnpost , december 18 , 2015 ( plus comments submitted by laura gauger and others ) .
polymet is a canadian corporation with a proposed
northmet
mine they ' d like to open near babbitt , minnesota . they propose an open pit sulfide ore mine .
for a 2015 side - by - side comparison ( fully referenced ) of the flambeau mine ( wisconsin ) and the northmet / polymet proposal ( minnesota ) , please click on the following link : flambeau mine – vs – polymet .
for a side - by - side comparison ( fully referenced ) of the flambeau mine ( wisconsin ) and the northmet / polymet proposal ( minnesota ) , please click on the following link : flambeau mine – vs – polymet ( november 2015 ) .
justin mattson and steve koschak each live within a few miles of the proposed polymet copper mine and processing plant near hoyt lakes .
the state has signed off on the environmental review , but it is unlikely polymet will build a mine in the near future .
“polymet names brad moore executive vp - environmental and governmental affairs , ” polymet press release , jan 24 , 2011 .
polymet mining corporation has proposed a sulfide mine called the “northmet project” between babbitt and hoyt lakes , minnesota . this project proposes to develop an open - pit mine to extract copper , nickel and other metals .
two wastewater treatment plants to treat polluted water from the mine site and the tailings basin would operate when the mine is running and would continue operating after the mine closes . treatment will be needed at the mine site for a minimum of 200 years and at the plant site for a minimum of 500 years .
comments on polymet mine site contaminant northward flowpath and groundwater model calibration , great lakes indian fish and wildlife commission , august 2015 and june 2015 .
polymet ' s mine would initially be much smaller than many of the open pit copper mines in states like arizona and utah . but it ' s bigger than two copper - nickel mines in the midwest . the flambeau mine in wisconsin operated during the ' 90s and produced about 362 million pounds of copper over the life of the mine — what polymet hopes to produce in just five years of mining . one other midwestern copper - nickel mine is currently under construction in michigan ' s upper peninsula . the eagle mine owned by lundin mining is being built underground , where mining would take place for eight years . that mine would produce more nickel but less copper than polymet .
• story : polymet an economic opportunity or too environmentally risky ? • map : sites of proposed copper - nickel mines • photos : ramping up to mine copper • timeline : polymet ' s history in minn .
300 jobs to rule them all , one mine to bind them . . .
the mine still faces a public comment period before gov . mark dayton and federal agencies will make final decisions about whether to issue polymet its needed permits .
in december 2013 , the minnesota department of natural resources ( dnr ) published the “supplemental draft environmental impact statement” for polymet’s proposed mine . the public submitted a record number of comments for an environmental review document in minnesota , 58 , 000 . 98 % of these comments opposed the mine as proposed . the final environmental impact statement for polymet’s sulfide mine proposal was officially published on november 13th , 2015 .
still , the mining industry was not able to keep the water clean and prevent long - term pollution problems at wisconsin’s flambeau mine ( “the newest and smallest copper mine in the world” and a mine that operated under laws branded as “tough” by the industry ) .
maccabee said that’s cheaper than a treatment plant at the mine , but it increases the risk of spills and makes adequate long - term water treatment after the mine closes less likely .
on june 21 , 2016 , the hibbing area chamber of commerce ( hibbing , mn ) sponsored a presentation about wisconsin’s flambeau mine entitled : “the flambeau mine : a 30 year history on environmental protection and stewardship at a nonferrous metallic mine . ” please click here for flyer .
u . s . rep . rick nolan has introduced a bill to force completion of a land swap needed for the proposed polymet copper - nickel mine in northeastern minnesota .
gov . mark dayton has decided not to conduct a human health assessment of the proposed polymet copper mine project , agreeing with state regulatory officials that the study isn’t needed .
the polymet mine represents a new frontier for the iron range : a mine for copper and nickel , rather than the iron that gave it its name . but it’s also an old frontier : a battle between economic and environmental interests with deep meaning for all sides .
the flambeau mine was a copper / gold / silver mine developed in a massive sulfide deposit near ladysmith , wisconsin in the 1990s . owned and operated by rio tinto of london and its kennecott subsidiary ( dba flambeau mining company ) , the mine was quite small by today’s standards .
polymet says the lawsuits are , in a way , a sign of progress for the company since they indicate the mine is nearing the end of its review and permitting process .
there’s no way to know for sure . a few factors could lessen the mine’s economic impact :
still , litigation can mean delays . especially lawsuits expected later in the process , when the state department of natural resources makes its decision whether to grant polymet a permit to mine .
polymet ' s proposed mine is located near babbitt and the processing plant would repurpose u . s . steel ' s former plant in hoyt lakes . click map for larger version .
smartphone users , chemotherapy patients , environmentalists and people who care about minnesota’s economy all have something in common : they should join us in supporting the proposed polymet mine in northeastern minnesota .
a decade after polymet mining corporation’s symbol first appeared on the american stock exchange , minnesota has at last signed off on the bitterly fought environmental review of its proposed copper nickel mine .
the mine site is located within the superior national forest . is mining allowed on national forest land ?
yet mattson and koschak have vastly different views on what minnesota ' s first copper mine might mean .
details of the underground mine models . minnesota environmental quality board , 1978 . ( cn - 111 )
mattson of aurora is the teacher . he ' s in favor of the proposed polymet mine that he says will create jobs and keep families on the range and kids in his classroom .
the plan for the polymet processing plant at hoyt lakes . click for larger version .
polymet mine in hoyt lakes , minn . has been mired in a permitting battle for over eight years and the issue has become politicized in the state and particularly in the eighth congressional district .
palcich worries that polymet is just the first mine in line . if it ultimately goes forward , she said , other copper - nickel mines exploring in the region could follow in its wake .
details of the open pit mine model . minnesota environmental quality board , 1977 . ( cn - 110 )
polymet is a junior mining company headquartered in vancouver , canada . the company has never operated a mine before , and is backed financially by the swiss company glencore . glencore has a significant financial stake in the company , and has an exclusive agreement to sell the mine’s metals on the global commodities market .
nolan , who represents northeastern minnesota , has been working to remove obstacles to both polymet and the proposed twin metals mine near ely , saying the minerals can be mined safely without harming the environment .
but two of the lawsuits filed allege the government undervalued the land it traded to polymet .
polymet ceo jon cherry at one of his company ' s buildings near aurora , minn .
what are the risks of polymet ? the assured impacts and risks are numerous , and accrue , not surprisingly , to the public , not the operators of the mine . here are just a few :
minnesota law requires the company to put up enough money to cover the cost of closing a mine , and this one will require indefinite water treatment long after the copper and nickel is gone . and polymet would be the state’s first copper - nickel mine , which carries far greater pollution risks than the taconite industry .
the dnr has received polymet’s permit to mine , wetland replacement plan , water appropriation , dam safety , and public waters work permit applications . you can find these applications using the navigation menu above or below .
i consent to receive email updates from polymet . i understand i can unsubscribe at any time .
to eliminate that conflict , polymet has proposed a land exchange with the forest service as part of the eis . under the exchange , the company would trade several privately owned tracts of land inside national forest boundaries in st . louis , lake and cook counties , for the land where polymet wishes to mine .
minneapolis ( ap ) — an environmental group says the design for the proposed polymet copper - nickel mine in northeastern minnesota has changed in significant ways that require regulators to conduct a fresh environmental review of the revisions .
the partridge river curls around the mine site , and flows into the st . louis river and then into lake superior
problems and approaches in the revegetation of mine wastes . minnesota environmental quality board , 1978 . ( cn - 001 )
the forest service agreed to trade 6 , 650 acres of federal land to polymet where it wants to dig its open pit copper mine near babbitt and hoyt lakes , on the far northeastern edge of the iron range .
ehlinger also said mine discharges into the partridge river could contaminate colby lake , which supplies drinking water for the town of hoyt lakes , and recommended that polymet participate in developing a contingency plan should colby lake become polluted .
the plan for the northmet mine site at year 20 , when extraction operations are projected to end . sulfides in waste rock at the mine site will need to be contained and treated for an additional 200 years . click for larger version .
polymet is proposing something minnesota has never allowed before . the company’s own computer models show that hundreds of years after the mine closes , water seeping into groundwater and flowing into streams and rivers at the site will be polluted with heavy metals and sulfates . unless all of this water is captured and treated , the mine will pollute surrounding waters . minnesota law requires that a closed mine site be “maintenance free , ” but polymet’s mine plan calls for hundreds of years of monitoring and expensive water treatment . worse , these models don’t even show that the pollution stops after 500 years . they just stopped modeling at 500 years . in other words , the pollution could go on for even longer .
four lawsuits have already been filed that could potentially delay the polymet copper - nickel mining project proposed for northeastern minnesota . and several more are expected if the state eventually grants the mine the permits it needs to begin construction .
polymet plans a $ 600 million open - pit mine and processing center near hoyt lakes — employing 300 people for 20 years or more — mining and processing copper , nickel , platinum , palladium and possibly other valuable metals .
wisconsin copper - sulfide mine proves the need for caution , laura gauger , duluth news tribune , august 16 , 2016 .
moore said he could not speculate about the future , but that the company’s intention is to build and operate a mine .
environmental groups say the contested case hearing should be automatically called by the dnr in this case because of the many controversial elements of the polymet proposal , what would be the state ' s first - ever copper - nickel mine .
wisconsin’s flambeau mine has come and gone . yet , it continues to be cited in various discussions , both pro and con , over the development of new mines in the lake superior region like the proposed polymet / northmet project .
© polymet mining , inc . | 444 cedar street , suite 2060 | st . paul , mn 55101
he also pointed out that polymet held up to the most extensive and lengthy environmental review in minnesota history .
minnesota governor mark dayton visited the gilt edge mine superfund site in october 2015 to learn more about unfunded cleanup from sulfide mines .
marcotty , josephine .
iron range mine could pollute water for up to 500 years : state ' s first copper - nickel mine would require billions of dollars in long - term cleanup , regulators say .
star tribune , october 7 , 2013 .
to see how some of the same corporate “players” at polymet have been or are currently involved with the eagle project in michigan’s upper peninsula , the resolution copper project in arizona and / or the flambeau mine in wisconsin , please click here .
the cost of mining could go up in those years , which would be bad for polymet , davis added . but metals prices could also go up , which means a delay could work to polymet ' s advantage .
under the agreement , polymet would get 6 , 650 acres of federal land it needs in the superior national forest in return for about the same amount of private land that would be added to the national forest . polymet holds the mineral rights to the federal land where it wants to mine near babbitt , but can’t proceed without owning the surface rights .
the duluth complex is considered one of the biggest copper - nickel deposits in the world . polymet ' s mine would tap into just a small part of that , with the possibility of expanding later . polymet ' s goal is to produce 72 million pounds of copper , 15 million pounds of nickel and 106 , 000 ounces of precious metals annually .
if some of the polymet jobs were filled by people moving into the county , the mine would have a smaller effect on local unemployment , though the amount of money put into the local economy in the form of wages would be the same .
still , davis said the rich copper ore asset in the ground that polymet controls isn ' t going anywhere .
but polymet spokesman bruce richardson said the changes “do not have significant environmental effects” and shouldn’t reopen the review process .
a minnesotan’s guide to the polymet environmental impact statement , the reader , issue 866 , november 12 , 2015 .
whatever amount they come up with , polymet will have to decide whether it’s worth the investment , dayton said .
that assessment comes at a critical time for polymet’s proposed $ 650 million open - pit mine near hoyt lakes . as the proposal moves into its next state - permitting phase , state regulators are wrestling with how to cement a financial agreement to protect minnesota taxpayers from the risks inherent in copper mining — catastrophic accidents , mine closure and water treatment that could last for hundreds of years .
a team of financial consultants hired by the state of minnesota says its doubtful that polymet mining corp . can come up with the hundreds of millions of dollars necessary to protect taxpayers against long - term environmental risks from its proposed copper - nickel mine .
polymet officials say that as planned , its open - pit mine would not produce acid drainage . and the state’s 10 - year environmental review , completed last year , also concluded that as proposed it could be built and operated without producing acid runoff .
davis says that that’s not necessarily true . if polymet’s northmet mine could produce copper at a low price , then a big miner like glencore might find it attractive , he said . “glencore has to stay in the mining business , ” he said .
brad moore , polymet’s vice president for governmental affairs , said small and large mining companies can and do find ways to fund financial assurance packages and project construction . polymet is in the process of doing that now , he said .
waterlegacy says changes in the mine’s tailings basin and wastewater treatment facilities , and a new disclosure of how much water would be pumped from the mine , obligate federal and state agencies to take a closer look — a move that could cause further delays in an already long process .
polymet officials say the company has spent more than $ 200 million on that environmental review and permitting process since 2006 .
but that’s what mining companies always say , and i’ll admit that polymet’s credibility with me took another hit recently when officials tried to downplay the company’s interest in having the hoyt lakes plant handle ore from other future mines in the area , whether operated by polymet or by other companies that would do their own digging and pay polymet to do the processing .
in january 2018 , the minnesota dnr issued a draft permit to mine , which is now open for public comment through march 6 , 2018 .
statewide , the economic impact of one new mine would be relatively small , lowering the statewide unemployment rate by just 0 . 04 percentage points .
impacts of fugitive dust emissions from a model copper - nickel mine and mill . minnesota environmental quality board , 1979 . ( cn - 012 )
besides waiting on the land exchange , polymet is in the process of applying for the state and federal permits it needs .
we will develop the mine in two distinct phases . phase i involves development of 225 million tons – nearly one - third of northmet’s known resource – into an operating mine processing 32 , 000 tons of ore per day . it also includes rehabilitating the former ltv steel mining company processing plant .
— fluctuating prices of copper and other minerals could lead polymet to suspend or scale back operations for part of its 20 - year projected life - cycle . other mines in the iron range have recently announced idlings , putting hundreds of people temporarily or permanently out of work . richardson said he couldn’t predict the future but said the polymet mine would be “profitable” today even with current low copper prices .
to watch a youtube video about the myth of the “environmentally responsible” flambeau mine , click here : laura ( furtman ) gauger interview , june 2009 .
polymet plans to process 32 , 000 tons of ore per day . that means , each day , to produce 240 tons of metal , the company will generate 76 , 800 tons of waste rock , that will either be stored at the mine site , or in the tailings basin . or , put another way , polymet will move 320 tons of rock for every ton of metal it produces .
the global economic slowdown also means that steel , oil and equipment are cheaper , meaning the mine could be built at low cost , and then be up and ready to go when commodity prices rise again , said brad moore , polymet’s vice president of environmental and regulatory affairs .
—the original plan included a water treatment facility at the mine site near babbitt to reduce sulfates , metals and other pollutants before the wastewater gets pumped to the processing plant 9 miles away near hoyt lakes . the new plan is for pipelines to carry untreated water from the mine to the plant for treatment .
polymet says it would create 360 full - time jobs once it’s fully operational — and not minimum - wage jobs , either .
there ' s a big economic benefit for polymet and he world at large by not leaving this resource unused in the ground .
while polymet has advanced to the permitting phase , the obama administration last year decided against renewing mineral rights leases needed by the proposed twin metals mine near ely , citing the potential threat to the nearby boundary waters canoe area wilderness . the trump administration has stood by that decision so far .
will polymet deposit $ 85 million up front with the state of minnesota ? doubt it ; $ 85 million is about 1 / 2 of polymet ' s net assets . of course , if annual cleanup is $ 6 million , then roughly double that figure . ( by the way , if polymet did deposit that money , we ' d probably just spend it like the tobacco bonds . )
moore also said polymet has proved its ability to raise capital through the $ 300 million it has invested in the project to date .
the answer , of course , would be to require polymet to pay big $ $ while the mine is in operation . $ 3 . 5m for 500 years is $ 1 . 75b ( assuming no inflation ) , so the bare minimum starting point should be $ 87 . 5m annually .
unspoiled lakes and forests are the attractions that bring customers to their business , and the koschaks say copper mining jeopardizes that . while peak employment may hit 400 at the mine , the environmental impact statement predicts that the majority of workers will move out of the area when the mine is played out in about 20 years .
estimation of particle size distribution : run - of - mine waste rock and primary crusher products . minnesota environmental quality board , 1978 . ( cn - 089 )
meador , ron .
meet twin metals , and the biggest north - woods mine you ' ve never heard of .
minnpost , february 13 , 2014 .
maccabee said that would cut costs partly because the buttressing wouldn’t have to be built right at the start of construction . raising the example of the disastrous 2014 tailings dam collapse at the mount polley gold - copper mine in canada , she said the change would increase the risk of a failure at polymet .
polymet officials said the final number has yet to be negotiated , but the company has proposed setting aside $ 332 million for financial assurance .
this should stop polymet ,
said elanne palcich , a retired teacher from chisholm and a member of save our sky blue waters .
the main permit the company needs from the dnr is called the
permit to mine .
dnr officials say permitting decisions are made on the technical merits of the project and whether or not it meets state rules and standards . ultimately the dnr commissioner , currently tom landwehr , makes the decision on whether to grant permission to mine .
polymet owns the mineral rights to the northmet deposit near babbitt , but the u . s . forest service does not believe that gives the company the right to surface mine . the agency says that would be inconsistent with the weeks act , the law under which the superior national forest originally purchased the land .
copper mining carries different and greater environmental risks to water than minnesota’s long - standing taconite industry . polymet’s open pit mine and processing plant would operate for 20 years , but it would require decades , or even centuries , of expensive water treatment to protect the lakes and rivers that ultimately drain into lake superior .
anderson , lewis clarke .
the copper nickel controvery , or , can we mine without a mess ? .
the minnesota volunteer , november - december , 1975 .
and , they say in a report filed with the state , there is no certainty that polymet will find the deep pockets it will need .
dayton in recent weeks has come under pressure to get out of the way of the polymet project , including threats from republican leaders in the house to hold up a special legislative session that would extend unemployment benefits for laid - off miners if the governor didn’t vow not to block polymet .
industry analysts , however , say that for most “junior” mining companies like polymet , the mission is not mining . it’s to win the permits .
kuipers said minnesota should ask for $ 934 million up front to pay for at least 500 years of water treatment and mine closing costs two decades from now , he said .
polymet still needs to find money to build the mine , estimated at about $ 650 million , plus another $ 72 million to fix old pollution problems at the tailings basin and the as - yet unknown burden of financial assurance . moore said the company is talking to potential investors and “interest in our project is strong . ”
most lawsuits filed so far challenge the land swap forest service officials approved in january , a deal that ' s critical to polymet ' s plans .
proposed sites to be preserved that are located on the copper - nickel mine site area in the superior national forest . minnesota environmental quality board , 1976 . ( cn - 067 )
“this is the hope with polymet — that someone will buy them out , especially if the environmental objections have been de - risked , ” said kaiser .
but the commissioners said the issues raised by medical professionals already have been covered and that time is running out to conduct new reviews of what would be minnesota’s first - ever copper mine .
a polymet mining official explains in december 2013 how the company will use rod mills , one of which is at right , to crush metal - bearing rock from 1 / 2 - sized pieces to small pieces of gravel as part of the process of extracting copper , nickel and other metals from the planned mine . ( file / news tribune )
polymet wants to mine copper , nickel and precious metals for 20 years at a site located just north of hoyt lakes in the superior national forest . the northmet deposit is part of what is known as the duluth complex , which stretches from about 150 miles north of duluth all the way to the canadian border . polymet would build three open pits and blast and drill to get to the ore containing minerals . ore would be put in rail cars and shipped seven miles west to an old iron ore processing plant — ltv steel — which closed in 2001 . polymet is repurposing the facility to process up to 32 , 000 tons of copper and nickel per day .
“a minnesotan’s guide to the polymet environmental impact statement , ” laura gauger , the reader , issue # 866 , duluth , minnesota , november 12 , 2015 .
polymet is an effort to mine low - grade ore ( less than 1 % of what is mined is valuable mineral , the rest is waste ) on the cheap . three hundred and sixty jobs for 20 years are in no way comparable to centuries of toxic pollution threatening jobs and livelihoods for our children ' s great , great , great grandchildren .
for those of you who were not able to get off work to travel to hibbing for the tuesday lunchtime talk ( $ 18 admission fee ) , deer tail press ( duluth , mn ) is pleased to offer a free online alternative entitled : “the flambeau mine : a 30 year history on environmental degradation and misleading the public at a copper sulfide mine . ” please click here for flyer .
while i agree that creating new jobs in northeastern minnesota would be an important outcome of the mine , the disasters of a leak could go on for decades , if not centuries . a leak or a mine closure due to economic conditions could hurt the economy in the long term — far more than any near - term benefit . therefore , copper - sulfide mining should not be approved in minnesota
that could test the commitment of glencore , the giant swiss mining conglomerate that holds a third of polymet’s stock and which has been its primary lender up to now .
mining minnesota ( a mining trade organization promoting the polymet project ) and its executive director frank ongaro have been called out for providing false and misleading information to minnesota lawmakers and the public regarding the environmental performance of the flambeau mine ( reader weekly , issue # 821 , december 31 , 2014 ; cover by bruce woodman , duluth , mn ; duluthreader . com ) .
no . and no other watershed either . the polymet project is in the lake superior watershed so none of the water that will be discharged from the site would ever enter the boundary water canoe area wilderness lakes or streams . polymet’s commitment to protecting water quality and complying with all applicable water quality standards remains steadfast regardless of the watershed .
the group first made its request one year ago , saying a neutral administrative law judge should hold hearings on the details of the permit to mine now being drafted by the minnesota department of natural resources .
mine critics don ' t question the technology itself , but they ' re skeptical as to whether polymet will be able to successfully capture all the water at the mine site and from the tailings basin that will then be treated by reverse osmosis . for example , they say the bedrock under the tailings basin is fractured , and argue that some water will escape the site before it can be treated by reverse osmosis . they also say the technology is very energy intensive , and produces a byproduct known as
brine
that has to be disposed of properly . finally , they argue that the technology is very expensive to run , and question who will pay to operate the plants if they ' re needed for up to 500 years or even longer after the mine is closed .
as a chemistry teacher , he knows the world needs the minerals underground between ely and aitkin for wiring , circuit boards and much more . cars , computers and electric lights all need copper . nickel is used in rechargeable batteries , including those in hybrid cars . platinum , another precious metal polymet hopes to mine , is a crucial component in catalytic converters that reduce pollution from cars .
“we’re talking about middle - class , living - wage kind of jobs , ” said bruce richardson , a polymet spokesman . “these are jobs that build communities and families . ”
the permits themselves then become an asset that polymet could sell to another company . the betting has long been on glencore , which already owns about a third of the company .
polymet is a small canadian mining company whose only asset is the proposed mine site and the old taconite processing facility and tailings it owns on the iron range — and they are of value only if the company succeeds in getting a state mining permit , the consultants said . that means the financial protections would have to come from a company or partner with much deeper pockets , they said .
another suit from the center for biological diversity challenges a
biological opinion
issued by the u . s . fish and wildlife service , and contends the mine would destroy critical habitat for threatened lynx and wolves .
“projects like this end up being mothballed , ” said john kaiser , an industry analyst who specializes in “junior” mining companies like polymet . “this is happening all across the world . ”
maccabee cited an independent review by a canadian mercury expert who found the mine and processing center near hoyt lakes would create a significant risk of raising toxic methylmercury levels in local waterways , including the st . louis river .
the consultants’ report underscores the fine line minnesota must walk in the coming months . if it asks for too little from polymet , state taxpayers and the people downstream from the mine could pay the price — tens of millions of dollars in future cleanup costs . if it asks for too much , a long - awaited project seen as an economic boon to the iron range could be stopped in its tracks .
i think these anti - mining groups are trying to cause delay . because they see polymet moving closer to being a permitted operation ,
said mining minnesota executive director frank ongaro .
before proceeding with the proposed northmet mining project , polymet must obtain a number of required permits and approvals . for this project the dnr is responsible for the following state permits and approvals :
polymet mining will use the ltv steel mining facility , which shut its doors jan . 3 , 2001 , near hoyt lakes , minn . , for its copper - nickel processing plant .
rainwater that comes in contact with any waste rock , tailings or the mine will be collected , contained , reused to the extent possible in the processing operations , and eventually treated before it is ever discharged from the property .
koschak , an ely native whose family has owned river point resort on birch lake since 1944 , says the copper mine ' s potential for long - term environmental damage isn ' t worth the short - term economic gain .
the dnr is expected to release the draft permit later this year . the permit will include nearly all of the key elements and details of how the company will mine and how it will keep potential pollution out of the environment .
this undated file photo shows the ltv steel processing plant near hoyt lakes , minn . , which was taken over by polymet mining corp . to use as a copper - nickel processing plant .
various polymet process documents ( e . g . , the final environmental impact statement and earlier renditions of the report ) are posted here . please scroll down to the bottom of the page .
polymet will be a historical footnote in 200 years . the poison will still be with our descendants , who will not think highly of the venal and shortsighted public officials who approved this travesty .
global climate change has us underwater and roasted within 100 years . if that proven science is wrong , perhaps in 500 years we ' ll have a method to extract the mine products safely while cleaning the water at the same time .
so far the dnr and polymet officials say the request is premature — that a contested case or evidentiary hearing must be based on the details of the permit , which isn ' t yet finalized .
paula maccabee , an attorney for waterlegacy , said the plans changed between march 2016 , when the dnr approved the final environmental impact statement , and when polymet started submitting permit applications in recent months .
—the design of the tailings basin dam . polymet had proposed to use a technique called “cement deep soil mixing” to stabilize the soil in the basin area and reduce the risk of a dam failure .
i’m willing to be persuaded that newer mining technologies and stronger environmental commitments could make the polymet project a dramatic departure from hard - rock mining’s terrible history of lasting harm in this country and others .
water control and treatment methods have been used successfully in mining and many other industrial and municipal applications for decades . they will be used at the polymet site to meet all applicable water quality requirements .
this week , dnr officials said the agency is committed to making the permit - to - mine process and financial assurance proposals
public in a timely way during the permitting process
but said it ' s still working out details for this . the agency also said polymet will not set conditions for financial assurance and added that financial assurance proposals will be reviewed with
great rigor ,
with outside financial and scientific experts brought in .
the u . s . forest service has authorized a land exchange with polymet to consolidate our respective land ownerships . the forest service will acquire 6 , 690 acres of private land from polymet to become part of the superior national forest ; we will acquire 6 , 650 acres of surface land over the mineral deposit we already control . for more details about the land exchange , download our land exchange booklet .
more than $ 300 million already has been invested in the project , a large share of that for environmental review and permitting . we also must provide bankruptcy - proof financial assurance , the provisions of which are in the draft permit to mine .
the environmental review that minnesota approved last week predicts that closing the mine will cost $ 200 million , plus $ 3 . 5 million to $ 6 million annually to treat the water that flows from the site — perhaps for hundreds of years .
polymet has indicated it could expand the project beyond what is described in the environmental impact statement . but the eis only covers the 20 - year plan and is specific about how much area would be mined and how much waste would be generated . if polymet wants to expand the mining site or increase its production and waste output , a new environmental study would be conducted to assess the impact of that expansion .
polymet has no experience operating mines , but their largest financial backer , glencore , does . glencore is a financial giant in mining , and has a terrible reputation regarding labor , human rights and the environment .
polymet would be a huge consumer of electricity , much of it coming from the dirtiest coal power plants in minnesota . polymet’s electricity supplier , minnesota power , got 85 % of their power from coal in 2013 . polymet would emit 707 , 342 metric tons of carbon dioxide into the atmosphere every year . this would contradict minnesota’s goal to reduce carbon emissions . the minnesota next generation energy act set a goal of reducing minnesota’s greenhouse gas emissions 15 % from 2005 levels by the year 2015 , and 30 % from 2005 levels by 2025 . minnesota is uniquely vulnerable to climate change , particularly the boreal forest of northern minnesota .
as of june 2015 , the agencies responsible for the polymet environmental review have released an internal , preliminary version of the “final environmental impact statement . ” this internal version is not available for public review and comment .
i can’t imagine whom they thought they were kidding with that obvious dodge . on the other hand , the story served to underline this key reality that should be kept in mind as the polymet process goes forward :
a computer model is at the heart of predictions about water pollution from polymet . a water model is a representation of how water moves around a site . the polymet water model assumes that there is little groundwater moving through the site . the result is that the model shows water moving very slowly , and pollutants sticking to soil instead of moving with the water . dnr hydrology data show that the polymet water model significantly understates the amount of water flowing in the nearby partridge river . if this information is wrong , predictions about water pollution are in question . if the model is incorrect , and there is more water flowing through the site than it assumes , the polluted water from pits and waste rock will move more easily through the soil , and reach lakes and rivers more quickly . the water could also carry more pollutants than the polymet model predicts .
polymet mining will meet or exceed applicable federal and state water quality standards and regulations , including the strict minnesota sulfate standard for wild rice . the water it discharges back into the environment will be both swimmable and fishable .
a portion of that is to make sure that we have very good science , a thorough process and review to withstand the challenges that typically come with a proposed mine project ,
said moore .
we built that into our thinking and our work .
minnesota’s iron range has been buffeted for decades by the rise and fall — but mostly fall — of the mining industry . now , the controversial polymet project has fired up hopes that mining could be on its way back .
“the epa review provides feedback and guidance , ” said jon cherry , polymet’s chief executive officer . “ we will continue to work with the [ agencies ] to ensure they receive additional data or information that might be required . ”
glencore , the swiss giant that has provided $ 175 million in loans and investments to keep polymet afloat and contracted to buy its copper , last week reported losses of $ 5 billion for the year , and is shedding assets . the world’s third - biggest copper producer , glencore has closed one of its mines and has said it expects to cut annual production by one billion pounds by 2017 . that’s 14 times the amount that polymet would produce at peak production .
in other words , nobody yet knows how long water at the mine and plant could require treatment , and nobody will know until water at the sites has been subjected to actual treatment and monitoring . but some number had to be selected for the impact assessment to go forward .
they ' re demanding an evidence - based hearing without any evidence . they are reacting to something that hasn ' t happened yet , ' ' said brad moore , polymet ' s executive vice president of environmental and governmental affairs .
for those concerned about protecting the lake superior watershed from potential mining impacts linked to the proposed polymet project in northeastern minnesota , please feel free to make copies of the following bi - fold brochure and distribute to your friends and colleagues .
on the u . s . senate committee on energy & natural resources to hold hearings on the proposed transfer of 6 , 650 acres of federal lands in the superior national forest to polymet , laura gauger , march 9 , 2016 .
financial risk to future generations will be enormous . who ' s to pay for active water treatment for centuries ? what about leaks , spills and accidents ? mine sites are the # 1 liability of the taxpayer supported superfund cleanups , with a bill exceeding $ 50 billion to date .
this undated photo shows the ltv steel processing plant near hoyt lakes , minn . , which was taken over by polymet mining corp . to use as a copper - nickel processing plant . ( ap photo / mesabi daily news , file )
barring any lawsuits , polymet can then begin acquiring the more than 20 required federal , state and local permits to develop a mining operation . much of the information collected and analyzed in the eis will be incorporated directly into the permitting process .
that’s where polymet officials are staking their claim . the company’s financial projections could change somewhat as it updates its planning in coming months , moore said . but polymet’s most recent documents say that the old ltv taconite processing facilities near hoyt lakes — tailings basin , railroad line and crushing plant — that it acquired from cliffs natural resources will allow it to produce copper at $ 1 . 05 per pound . that means the company could be profitable even at today’s low prices , moore said .
state law requires mining companies to commit money up front to pay for any maintenance , water treatment or other cleanup that might be needed after the mine closes . this financial assurance can come in many forms , including cash , bonds and trust funds . state officials would decide when to officially close the mine and
release
the mining company from responsibility . if pollution were detected after closure , the state would be responsible for taking action to clean it up . whether the state would have to cover those expenses would depend on what kind of financial arrangement had been made with the mining company .
this land exchange should never have gone through . it could have stopped polymet in its tracks long ago because the forest service should have done its duty . that is why we chose to do this , to hold the forest service accountable .
the beginning of the process is identical to iron ore mining , which is why polymet is proposing to reuse ltv steel ' s old taconite facility . giant mills crush the ore to a fine powder , each particle about the diameter of a human hair .
for 300 jobs over 20 years ? who could possibly think this is worth it ? only deranged champions on the iron range , and of course , polymet , who stands to flee the state in 20 years or so with a real bundle of profits .
speaking only for myself now , i can say that’s not the case . i could readily support a mining project that meets these tests , and i think it ' s possible that polymet will do so – though much remains to be seen , of course .
framing the polymet debate as the economy versus the environment presents a false choice . the real choice is whether jobs and tax revenue are grown within our state’s borders with strict environmental protections , or whether the economic benefits accrue elsewhere , potentially with weaker environmental safeguards .
ore from the mine will be transported approximately 8 miles west by rail to existing facilities formerly held by ltv steel mining company , which we own and will modernize . we will use existing crushing facilities combined with new milling and flotation circuits to produce copper and nickel concentrates that will be shipped via the existing railhead .
in northmet , which proposes to mine and process copper , nickel and other precious metals on land now within the superior national forest , minnesotans may be approaching a huge and high - stakes test of something very like the insurance idea , at sites within or near the state ' s most treasured boreal wilderness areas .
polymet controls the mineral rights underneath that land , but not the surface rights . in exchange , the company would give the federal government 6 , 690 acres of private land scattered around the region , land that by law is required to be roughly equal in value .