The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1897-11-03
IRON OUTLOOK

1897 are still under way, and six
months remain before the opening of
the season Of 1898; yet some questions
are already being asked as to the pro-
.sDects of the ore trade for next year.
The outlook for prices and production
and the possibilities OF the continu-
ance Of the BeSsemer Ore Association,
are naturally discussed. The buying
of the Two Gogebic properties by the
Carnegie interest is also factor
whose bearings are being canyassed;
but it is noticeable that this latest
departure. though it practically takes
the largest ore buyer out Of the mar
ket, has not caused 1.-THE Of uneasi-
ness produced at the close of 1896 by
the news Of the Mountain Iron pur-
chase.
Those who keep closest track OF the
cGsisumptlan of Lake Superior orei
find in the Developments of 1887
though some of these have been little
appreciated while the trade has been
in the midst Of them-cOmpensatiO
for the loss of the ore producers most
important customer. The ore trade
has been so in the habit OF keeping
its dye shipments and on figures that
relate to the producing side of the
business that as rule it has not CIV
en- the statistics of consumption due
Importance Closest students of ore
problems in all their bearings, whose
acquaintance with the operations OF
consuming interests has made it pos
sible to gauge closely the use OF Lake
Superior ores, have made some in
vestigations of late which yield sur
prising results. The figuring has
been based on a very careful anlysis of
blast furnace operations, taking fur
mace by furnace of those supplied
with Lake Superior ores, and setting
down, always on the conservative side.
the consumption of Lake Superiorores
since May l, the opening of the sea-
son of 1897. Allowance was made for
periods of inactivity in individual in
instances and the consumption eff ore
was figured at II ton for each ton of
pig iron, taking into account also the
probable use of cinder and in some
instances Of local ores. 1t appeared
from the calculation that if the fur
naces now in blast continue active to
May /, 1898, when the new ore season
opens-making no estimate for pos
sible additions-the consumption of
Lake Superior ores from May to May
will reach total between 100000
I3.50OO. 900 tons. This is quite beyond
ANYTHING ever attained in a year.
The boom year 1895 was probably
three million tons short Of it.. This
situation as it is to-day becomes more
impressive when it is stated that the
same investigation shows that if the
rate at which Lake Superior ores are
being consumed to-day is kept up for
a year, the total will be 14,700,000
tons.
1t would seem that developments
whose measure has not been taken I'M
til now have been preparing the trade
In advance for the removal of big
customer from the market. Similarly
coming in of the Mesabi, which at the
first seemed only an unmiXed evil, has
proved to be only the timely opening
or hn Of,
threatened famine.
1t might be inferred from the above
that events are paving the way for a
higher price for ore ia 1898. Natural
~ such prodigious demand, which
means the rapid exhaustion OF some
OF the choicest ore supplies in the
world. would suggest that iron min
ing companies are reaching the point
at which they can reasonably expect
better return on their heavy invest
ments. For most of them have seen
little profit in IS97-no such profit us
/, conceded to business involving so
somany risks and uncertainties. An
other valid argument for higher
price experience has put upon Mesabi
ores as controllers of the market. The
Mesabi range this year, hampered as
to output by nothing but the unwill-
ingness of furnacemen to use more
tlan so much of it, sends down about
40 per cent of the total from all ranges
possibly little less.
But .there are other considerations
that suggest better price for lake
ores next year. Chief of these is that
the miners must be paid higher wages,
Higher wages were certainly in the
programme, as most men in the trade
made it up, year ago, and higher