The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1897-03-31
A FOR ORE PRICES.
What Iron Trade Review Thinks
of the Ore Pool Collapse.

A4llIOC vi VIC I1CSSCAuCi W. aSoOOlotiOd.
in Cleveland on Monday, showed that
obstacles to the continuation or the
organization were insurmountable.
and at the general meeting held on
Tuesday the pool was formally dis
solved. The result was different from
what had been anticipated for three
weeks. While at no time in that
period was there any certainty OF
agreement, the disposition to make
concessions for the purpose OF saving
IA disruption seemed to guarantee
that at length common ground would
be reached.
In a general way it has been known
that questions growing u of the
lease of the Mountain Iron mine to
the Carnegie-Oliver interests were a
serious difficulty. but the refusal Of
the latter TO accept any restriction
was Immediately the cause OF Gissolu-
ton. The bearing OF the railroad
situation on the Mesabi range upon
the adjustment of alletments there
has already been pointed out. The
Minnesota Iron Co. considered some
concession due it from the Rockefeller
interest because of the large freight
age the latter had secured by leasing
the Mountain Iron mine while still a
member of the pool. From the Rookie
Teller company concessions were
forthcoming. 1t proposed TO submit
10 sharp reductions OF the product of
its w mines: and it is stated that
the company was willing to reduce
the minimum on which royalty should
be paid. in the case of the Carnegie
properties, so that limitation might
>be made on shipments from these
mines. But the Carnegie Steel Co.
took the position that it had done all
it was willing to do. in having agreed
in its contract with the Rockefeller
company not &c sell ore on the market.
and it would accept no limitation OF
its output. At the outset, it had
been the UNDERSTANDING that the
Carnegie Steel Co. was favorable to a
pool, but there appeared to be no
proposition, at the last. on which it
and the association committee could
agree. 1t is reported that an allot-
ment of LOCO, eco tons to the Mountain
Iron and Oliver would have been
agreed to by the other interests. 1t
has been developed that the Carnegie
Steel Co.. while agreeing in its con-
tract with the Rockefeller company
not to sell ore on the market reserved
the right to trade its Mesabi ores for
old-range ores. or to make conversion
deals, furnishing the ore and taking
pig iron. How much o~ld-range ores
or pig iron it can obtain in trades
with furnacemen will depend, of
course. on the extent Of the induce
ments it can offer. With no r~estric-
tion on the price Of MeSabi ores, and
with the Carnegie Steel Co S freight
rates from mine to upper lake dock
fixed at SO cents and its lake freight
no less than the average of the
market, other Mesabi ores will come
transactions. If the competition be-
tween the Minnesota Iron Co. and the
Lake Superior Consolidated Iron
Mines should extend to freight rates.
any reduction below so cents would
give an advantage to independent
producers, without extending to the
Carnegie-Oiiver interest, since the
latter is pledged to pay an u~nvarying
total of SI.05 for rail freight anO
ROYALTY.
1t has developed, in connection with
the dissolution of the old ore pool
that the deal for the Mountain Irou
mine was only taken up after the
Oliver Iron Mining Co., in which the
Carnegie interest is five-siXths, had
begun negotiations for the Mahonine
mine Of the Mahoning Ore Co., in the
Hibbing district. The Oliver Iron
Mining Co. had also taken an option
on the Sheridan mine in the Hibbine
district. 1t is explained that the
prospect of another road getting thi;
tonnage-namely, the Duluth, Missis
sippi & Northern, which is the only
line reaching the Hibbing district
and the certainty that the Carnegie
Steel Co. would acquire further
property on the Mesabi range, led the
~ anfnr infn f1t<
negotiations which ended in the lease
OF the Mountain Iron.
The most obvious effect of an oper
market on Mesabi ores and the low
basis to which other ores must come
in consequence, will be the lowest