The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1880-05-01
TIE ORE CONTRACTS.

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What is 10 Become OF the Furnace own.
ers?-Ihe Way Contracts Were made
Just at the Wrong Time.
Cleveland Lsttsrin the N. Y. Tribune.
Vessel men in this region are, as q gen.
eral thing, well pleased with the outlook,
because they had the good sense to make
season contracts last winter, when iron
ore freights were at the highest point. In
about two weeks last January 100000
tons Of Marquette and Escanaba ore were
sold and covered with contracts for deliv-
cry. About l, 10000 tons Of this ore are
to come to Cleveland and adjacent ports
on Lake Erie, and the traffic will require
at least $50 vessels. Nearly every craft
here suitable for the business is chartered
for the season, assuring the owners from
81 20 TO g per ton from Escanaba, and
81 so to 81 IS from Marquette. As they
carried ore last season as low as 90 cents
from the former port and 81 % from the
latter, 1t will be seen that they have good
cause for rejoicing.
This large quantity OF ore, exceeding
the entire production OF the mines last
season, was sold to the furnaces in this re-
gion at prices ranging from $40 to Sl2 80,
or ut an advance Of about S. per ton on
last years prices. It is well understood
that many OF these large mining compsn-
les declared dividends OF 10 per cent on
their stock valuation for 1879, and some
idea may be gained OF the enormous diyi-
dends they anticipate at the end OF this
years business. Mr.. Tlden Is largely in
lerested in what Ia known as the New
York Mine, which produced some 60,000
tons OF ore last season, and which will in
all probability double its production this
year; this Ia one Of the sources from which
'the barrel is TO be replenished.
There Is trouble, however, brewing with
the weaker furnace men, who are already
talking OF repudiating their contracts in
view OF the recent decline in iron. 1t is
well understood that o number OF weak.
concerns were blown in on the wave OF
prosperity in this line OF business last
fall, and now they find that they cannot
pay these prices for ore and compete in the
market with foreign iron, and they are
asking the ore companies 70 divide their
enormous profits rather than see them
forced to the wall. As the ore companies
are getting the lions share, the vessel
men do not feel disposed to reduce
freights. There is also some anxiety on
this account in anticipation Of reduc-
ton OF wages OF the furnace men, which
would in all probability lead to numerous
strikes and more or less trouble through
out the iron and coal regions.
Coal freights to Lake Michigan ports
have declined from 30 cents to 60 cents
per ton. The open winter and the low
price Of anthracite coal last season leave
the dealers In the Northwest with liberal
stocks on hand this spring, and in conse-
quence the demand is light Another
cause Of the break in lake freights, both
here and at Chicago, is the early opening
OF navigation on the lower lakes, while
the upper lake region and the ore ports
are still closed with ice. This enabled q
part OF the ore feet to put in one trip, in
coal up and grain down, before they could
possibly get any ore to carry. This rush
OF vessels TO Chicago has reduced the rate
on corn from cents TO 81 ceats to Buffalo
at the present time; but it is thought that
as soon as the upper lake region opens
grain ireights will rule higher, as the
large amount OF grain to be transported
will be out Of proportion to the number OF
craft in the trade.
The high freights for the Fall and the
ore contracts OF last Winter stimulated
ship.building, and it is an easy matter to
count twenty large propellers and barges
now on the stocks at various points around
the lakes. The tendency is to larger craft,
and towing Is gradually taking the place
OF sailing, while every inch OF water in
the Sault Canal and at the Lime.kilns
Crossing in the Detroit River Is utilized.
A fair estimateloi this tonnage OF the lakes
would exceed 5000 tons, and 1t would
not include large amount Of rebuilding
that has been done the past Winter. The
total tonnage that passed out OF commits
sion last season was Is, 500 tons, and 1t was
an unusually stormy year on the lakes,
though thus far this season bids fair TO ex-
coed 1t. Making all allowance in this re-
spect necessary, 1t is safe to estimate an in
crease OF 20,0l0 tons in the American bot.
toms on the lakes this season. The esti-
mated production Of the Lake Superior
mines Is about 2, 000, 900 tons for this year.
This, with 100000 bushels OF grain in
Lake Michigan ports to come forward and
the usual amount OF lumber, about $780,
600, 600 feet, to be carried, with fair
ireightage in coal and merchandise, tothe
upper lake region, will give active en-
pioyment to the tonnage Of the lakes, and
the prospects, at this early day, are GER
tainly very good, Notwithstanding the
present depression in treights.