Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-09
AN IMMENSE LOSS
To CieveIand's Iron Ore Trade
as the Result of Exist
ing Conditions.
SHRINkAGE OF PRODUCTION
Will Affect the Selling Price to the
Extent of S21,00O,000.
EXTENT OF SOUTHERNC0MPETITI0N
Those Who Believe That 1t Cannot Cut
Much of a Figure,
EXTENT OF sOUTHERNCOMPETITION
IN SPITE OF NATURAL ADVANTAGES


among the blast furnaces in the Mahoning
and Shenango Valleys. No such universal
paralyzation in this important industry has
probably ever before occurred, and The mag.
nitude of the disastrous consequences is only
realized by those directly engaged in the
mining and transportation of ore.
Superior mines furnished in actual figures
SS93. 146 gross tons of iron ore, which
amount equaled 81 per cent of the entire
production of the United States, and for the
wear 1891 reliable authorities assert that the
total output of the Lake Superior mines
will fall short of the six million ton mark,
or shrinkage in the production approx
mating 30 per cent compared with last year.
A Fifteen-MfIlion Dollar Loss.
This enormous restriction in the produc-
ton will first reflect itself upon values, and
it is very probable that the scale of prices
according to the different grades of ore will
return 10 the 1883 basis; that is to say that
ore which during 1890 sold at Sc per ton
will this year sell at So or a general reduc-
top in the price of 81 per ton. From this
statement the loss TO the ore trade by the
shrinkage of production will amount to al
most Sl5, 600, 600, and, further, the reduction
oi 81 per ton in the selling price will affect
100000 tons, and produce a grand total
loss to the ore trade approximating 81, ,000,-
600 compared with the year 1890.
The various water and,ra transportation
companies will be very heavy losers as
result OF the probable future condition of
the iron ore trade. Not only will they lose
the carrying of nearly g. 900, 600 tons of ore,
but the restricted volume OF traffic offering
Is expected will produce a competition that
viii only end in the adoption of nearly un-
profitable rates.
Practically all the lake freight steamers
depend upon the prosperity of the iron ore
trade tor their existence, which same can
also be said OF many OF the small lines OF
railroads that run through the ore-mining
districts on the Northern lake States
Several Railroad Lines Affected.
Many of the local railroads tapping lake
ports, including the Pittsburg, Youngstown
and AsntabuIa, Painesville and Fairport
Lorain and Wheeling, Pittsburg and West
erH, and the Nvpano division, derive the
greater part of revenue IRON the carrying of
ore from Lake Erie ports 10 different parts
Of Ohio and Pennsylvania, and there is no
doubt that their finances will be seriously
affected.
was told by Mr.. T. W. Niles, superin-
tendent OF the Lake Shore road at Youngs.
town, quite recently, that their traffic in ore
had fallen off about 40 per cent, which
affected their total traffic about % per cent.
This road is not much more favored than the
other ore-carrying roads III the matter of
total volume of ore traffic, ard if every road
is affected TO the same extent as the Lake
Shore many dividends will no doubt be
passed, and probably one or two receivers
appointed over as many different roads DUR
ing the course OF the wear.
In conversation with Mr.. c. C. Dallon, of
the extensive ore mining and transporting
firm of N. i. Hanna & Co., he yentured to
say that the production of Lake Superior
ore during 1891 would probably fall 3,O00,-
600 tons below the output last year, and that
the prices OF ore would in all likelihood be
re-adoption OF the prices that ruled during
1889, which were about 81 per ton below the
prices Of 1890 1t is his belief that the
revenues OF the different carving companies
wlI be seriously affected as the result of the
reduced amount of traffic, and the lowering
in rates that will naturally follow in the
competition by the different companies tose-
cure business.
Not Afraid of the South.
Drifting into a general conversation
about the condition of the pig iron market
and the extent of the possible injury result
ing from the encroachments by Southern
blast furnacemen on the domain of
Northern iron makers, Mr.. Dalton talked
lightly on the matter. 1t is his opinion.
and ne stated he had been looking for its full
hilment for the past two years, that the South
ern pig iron makers would never cut much
OF a figure in the Northern, especially the
Western Pennsylvania and Ohio markets.
He would not for a moment discharge the
pre-eminent natural resources of the South
but the lmprobability, far determined, of
the conversion OF Southern crude material
into pig iron, equal in quality to that made
in the North. precluded the chance OF the
South seriously injuring Northern mer-
chants trade.
The Southern product can lie used as a
mixture with Northern iron, but in such a
small proportion that no fear need be enter
taIned OF its ever totally dlsplacing North
ern-made iron. In an interview with Mr..
" alter Runyan, Of the ore mining firm of
Ruuyan, Stubbs & Mack, he fully agreed
with Mr.. Dalton, far as the restriction in
the production OF ore was concerned, as well |
as the after bad effects on the revenues of |
water and ralI transportation companies, re- |
sulting from the reduced volume of traffic !
Offering, bus he was disposed 10 give the /
question of the South's invading Northern |
iron markets with their prouuct, serious |
thought
The SOutis Natural Advantages,
He stated that he was not thoroughly con- |
versant with the coke or limestone advant-
ages of either the North or South, but knew
fun we'll the great disadvantage that North
er0 iurnacemeG lahored under in obtaining
their ore supplies. In the South he under
stood the conditions of the propinquity of
Iron ore, coking coal and limestone are
ideal, and are unequaled anywhere in the
world outside OF the famous Cleveland dis
trlct In England; that these materials were
exposed IN the surface of the mountains,
almost at the furnace doors. and that the
cost OF labor for mining was but 81 or 81 %
per day, but III the North the natural con-
dluon oI supplies was wonderfully dil-
ferent.
referring to ore, through h0ut the Lake Sd
pelluf district great shafts were necessary to
be SUNK IRON 500 10 l, 900 feet in depth, in
order to get at the vein. The cost of mining
was almost double that in the South, the
being paid from 81 80 to 81 80 per
day, ana IL was necessary to haul the ore to
the surface, load 1t in railway cars and haul
Il to the lakes, dump it iGto vessels trans
porting 1t hundreds Of miles, shoveling it
'Ut of vessels on 10 the docks, reloading it
Jn railway cars ami distributing at fara-wav
oiHta-in ali. handling it six different
ssnes ana carrying it probably a thousand
'illeS under the expense Of highly paid Ia
-ar and heavy transportation charges.
Possibility of Purificatiou.
Only slightly modified conditions govern
he Quarying of Limestone, the mining of