The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1898-04-09
FROM THE MINES

tanned this article dicussine the motive
OF the Rockefeller interest in it's recent
purchase OF the lease of the Sellers mine
on the Mcsaba range, which throws
some light ON the methods employed 10y
Rockefeller aud his associates Ca hold an
rail rates ON ore aud thus freeze out the
independent mines:
The purchase OF the lease oi the Sell
ers mine by the Consolidated removes
one more operator from the already linn
tied list Of independent shipdcrs aud gets
ont oi the way AN Institution that WAS
likely 10 ho troublesome Co the range
railrond combination in the fight for
! reduced freight rates. The Sellers min
| ing company was controlled 10y the Sch
oernbefg steel company and the Cary
Furnace company. No shipments were
made from the property last year be-
cause the furnace companies that own
all 81 the stock in the mining company
found that they could buy ore on the
open market from tie mining companies
that own the railroads cheaper thnn they
could mine the ore and pay royalty and
freight charges.
Naturally the furnacemcn were not
willing to sec the capital they had in
vested in the Sellers lost to them entirely
as would be the ease II they could not
operate the minc at u profit. As long ~
McSaba ore continues to sell mt present
1 A
unless freight rates are reduced. Thcop-
orators of the Sellers therefore, in order
to prevent the loss OF the Investment
which thcy have already made, were
take steps to secure n reasonable freight
rate. 1t required but little logic on the
part OF lie infringement OI the Rookie
Teller syndicate 10 reach the conclusion
10y buying the Sellers outright and con-
tract with the furnace companies that
owned il to furnish them with ore. The
furnace men could. a. the operators
of the sellers, institute proceedings
which, IA view 81 decisions already nude
by the state board of rilrond aud ware
house commissioners backed mp by the
supreme court, would be certain to ~
suit ~ u reduction Of at lrnst twenty
Eve pei cent. ia the present rates on ore.
II is estiinntcd that the earnings oi the
! range railroads dnrlug the present sea.
son from the ore traffic alone will
amount TO considerably more thnn So
900 900. A reduction Of twenty-five
per cent would mean loss To them be-
tween s 100000 aud $2,0OOOOO and
rather than take unnecessary chances
OF m adverse decision Of the board of
ralrond and warehouse commissioners
in Il euit brought by u shipper with sulli
Gent financial backing 10 prosecute it
vigorously, il was considered good bust
ness policy TO acquire he property OF
the prospective troublesome operator.
There can he no other reasonable ex-
planation oi The action OF The consoi-
dated IN acquiring The selNrs The big
company already has enough mines to
supply ~ demands that are likely To be
mpdA ON il for ore for The most twenty
years 'fhc lease OF tie sellers calls Tor
Il royalty OF twenty-five certs per ton
md there are any number ~ good pro
parties on the Mesaha range that can he
leased on much more advantageous
terms. Tho Sellers il an expensive mine
10 operate, compared with others, aud
is not particularly desirable property
for the Consolidated
la the purchase 81 the Sellers the
Rockefeller interests ARE simply follow
ing out the policy that the range rail
rond combination has been pursuing to
stnvc on the inevitable freight rate re-
duction. Whenever iurnnccmeu who
are operating mines ON the range have
made vigorous protest against the
eXoIbitant freight rates they have been
pacilied. Three yearsago the OliN er Min
| ihe legislature for IL reduction. They
Ind hardly begun before they quit, but
they scpVrod r9ntracis and leases from
Rockefeller which werp iq them cquiva-
i ltHA w liN lNVNtfN lHA| RilHl tiVA
| Threatened TO fight for. The MahoniDg
company which leases its mines from
Wright 4 Davis and ships il ore over
the Wright Il Davis road was given u
big reduction in royalty, which amuunt-
cd 60 the same thing ns y reduction in
freight rates. Tho Blwabik, q Consoli
dated property, operated by furnace
men, has been granted n reduction IN
the royalty Ia lieu OF n freight rate re-
\ duction. Several other concessions oi n
Sunday character might be mentioned.
1 u IL evidently ilr intci ton Of the com
bine Shcneycr lbrWagad by mine
owner or operilpr Strong enough 10
pat ~, e0o1 lisbl - compromise and
thus prevent tia litigation which pro-
nIisen to prove ~ disastrous,
4 =