The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1895-01-04

mon with all other business interests they
have suffered from decreased demand,
lowered prices and difficulty in collecting
bills receivable, with the holders of bills
payable clamorous for cash and refusing
anticipated extensions. II is customary
to sell the ore through n sales agent,
usually located ut Cleveland. Sixty and
90 days time is given the furnaceman on
purchases, and sometimes even SIX
months is allowed him in which to pay
for his raw material. As n consequence
of these credits many losses were incurred,
and even the strongest mines wero tenn
porarily crippled from lack of funds.
Small and weak mines went to the wall.
In addition TO the general panic, tho iron
trade suffered from little panic of its
own.
Tho trade had been in a bad way for
two years before. the rapid opening of
new mines, unrestricted competition and
n general feeling that IL was case of
devil take the hindmost, had badly de-
moralized the ore business. The iron ore
trade was preparing for little crash OF
its own, and it's coming coincident with
the general smash helped to mako its
effects more keenly felt. The opening OF
the Mesaba, with its rosy promises OF ore
mined for nothing or less n ton helped TO
make n bad matter worse. The operations
of Ferdinand Schlesinger, shrcwd Mil
waul1ee man, who managed to absorb
mines with productive capacity OF 1000
900 tons per annum, on capital OF little
cash and unlimited nerve, was also fac
tor in bringing trouble. Schlcsinger
robbed Peter to pay Paul, and was forced
TO sell ore at any figure to secure cash, a
fact which buyers soon grew to appreci-
ate, and used greatly to their profit.
Schlesinger's collapse in July, 1893, was
complete and the creditors secured but
small dividends. Every mine operator
felt that his neighbor was trying to under
sell him, consequently he undersold his
neighbor with results highly disastrous to
both parties.
Bessemer ore, which sold 10 years ago
Mt s. per ton delivered on Lake Erie docks
has gone gradually downward, % and 80
cents a ton each year, with an occasional
year in which prices held their own until
in 1898 it sold at 1915 per ton, delivered.
This was felt to be ruinous price, and
was supposedly tho very lowest figure at
which ore could be handled. but after the
total collapse of tho industry Is months
ago, prices were made by the Metropolitan
Land & Iron company, owning the Norrie
mine, the largest i'll the world, on the
basis of S2.75 per ton, n year ago, for 1894
delivery.
This fixed tho price, and other mines, TO
meet il, made great sacrifices, cutting
salaries, wages and every other expense
that could possibly DO pared. Railroad
frcights were reduced, lake freights went
to the lowest point ever known, and the
big mines squeezed through the season
somehow. A fow of them-very few
have earned small profits. The smaller
and weaker mines went into bankruptcy
or shut down till better times. The oper-
ating mines in nearly all cases wholly or
partially suspended all work of develop
mcnt, work that prudent miners always
keep several years ahead. All dead work
was stopped, and every effort strained to
getting enough money out of the product
to pay actual expenses and keep employees
from starving.
The winter of 1884 was n most trying
one on all the iron ranges. At Ironwood
and Iron Mountain the charity of tho gem
erous people of Wisconsin and Michigan
aided the county and municipal authori-
ties to feed and clothe tho suffering. At
Ishpeming, Negaunee and other older
towns no outside aid was asked,
but tho burden 20 tho charitable
anu tuc ldNpdNtIS WIS Ilpol EElON-
! Gus. Tho feeling that some employ
mcnt must be given the people to keep
them from actual starvation, coupled with
| the fear of tho competition of tho Mesaba
mines, caused the Metropolitan company
TO fix the price of ore at one dollar below
the extremely low price of the previous
year. 1t was an experiment which will
/ not be tried again. The mines are eager
| to sell their ore, but they see absolute ruin
| staring them in the face il the 1884 prices
are continued for two or three years.
| With no profit OH operations, no reserve
fund for emergencies, and nothing to de-
velop the NINE for future needs, they will
not deplete their ore bodies. At least the
operators say so, and the situation is such
that they are justified in calling a
| halt.
Labor is greatly dissatisfied, and tn
great strike of last summer at Iron wood
might be repeated anywhere, at any time,
under similar conditions. The Metro
politan company will not sell its ore for
| 1895 for last years figures. An advance OF
| even so cents a ton would establish a mar
gin on the safe side and allow labor n liv-
ing wage.