The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-09-15
ORE POOL INVOLVED
ITS EXISTENCE is I'M EVInENCE
IN THE RATE HEAR
ING
FACTOR AFFECTING PRICES

ants That Reduction of Rates
ON the GOgebic Has Been Fol-
lowed by Rise In Prices-The
Last Day at Cleveland.
CLEVELAND, O., Sept. 14.-The sec
ond and last day of the Cleveland hear
ing In the iron ore rate case brought
three very important witnesses to the
stand Robert Bentley, of the Ohio Iron
@ steer company, of Youngstown. was
called by the defendant railway and
Two witnesses were called by the COM
plalnants, their only ones here, Jas.
Corr1gan, of the mining, shipping and
furnace firm Of Corrigan, Mckinney &
Co, and +. A. Bates. the Cleveland ore
broker, VINO live years ago opened the
CINCINNATI mine on the Mesaba range
Mr.. Bentley followed the general lines
or the evidence offered yesterday. He
stated that the proportion of Mesaba
ore used In furnaces varied from 80 to
oO per cent, and that a greater proper
tlOn was not used on account of the
danger to furnaces and the expense of
operation. AS much Mesaba ore is used,
he said. as would be if prices were
very considerably less, as furnace
men in their anxiety to produce cheap
pig iron used now as great proper
ton OF Mesaba ore as was possible. A
reduction in rail costs, he said, would
1nure to the benefit of the ore consum-
er, as he would demand corresponding
reduction in prices. Prices Of iron ores
We're according to the witness, based
solely on costs that must be paid by
the consuming mining interests such
as Carnegie and other mine owners
who operate mines.
The two witnesses for the complain
ants gave testimony almost directly
contradictory. They believed a reduc-
ton in the rail rate would help the
miners, and unless rail rates were con-
siderably reduced, the consumers would,
they testified, get no benefit from this
reduction. They brought forward rail
reductions on Gogebic range ores, and
in vessel rates this year which, it was
said, did not result in corresponding
lower prices for ores as proof. In fact,
according to Mr.. Corrigan and Mr..
Bates, these ores, while there is a re-
duction in shipping rates of perhaps
fifteen cents a ton, sell this year at
ten to fifteen cents above 1897.
In answer to this the defendant
brought out the existence of an ore pool
that regulated these prices, before these
reductions were made.
FURNACE MINERS.
The witnesses for the COM
plainants were asked by Mr.,
Billson if the operation of furnace
miners on the old ranges in the past
fifteen years and their entry on the
Gogebic this year had eliminated
all profit for the independent old range
miners, and they testified that it had
not. They believed that railroad and
mine connection on the Mesaba had
had the effect referred to.
w. G. Mather, interested in the
Lake Superior & Ishpeming railroad,
was the first witness. He stated that
his company was not able to sell it's
bonds until it had guaranteed in it's
mortgage that a sinking fund would
be established that would retire the
entire bond issue in twenty-five years
of it's equipment and docks. This had
not been done by the Duluth, Missabe
& Northern road, and this, he said,
was a cause for the low operating cost
there He added that the Ishpeming
roads tOn-mile rate was higher than
that of the Duluth roads.
Harvey H. Brown, of the Stewart
Iron company, was the next witness.
The burden of his testimony has been
given above.
Robert Bentley gave considerable
technical information, and in many
ways proved himself the most inter
esting witness of the Cleveland hearing.
He had used as high as Is per cent
of Mesaba ore, and would use all he
could, as it was the greatest factor
in cheapening cost, but he reduced
the percentage to five-siXteenths Of
Mesaba, as large an amount as he
considered safe. He testified that he
had bought non-Bessemer ores this
year at 25 cents less that last, because
of lessened freights. No steelmaker
could exist, he said, unless he could
get ores at the same cost as the most
favored of competitors, therefore Car
negies cost regulated the entire pro-
ductiOn of ores. The export trade was
the future for the steel industry, and
to hold it export trade cost must be
kept down, and he believed the indus
try had arrived at a point in this coun-
try where small profits and great units
OF business must be considered as gov
erning the situation.
CARNEGIE'S CONTROL.
In the line of a reduction Of rates
lnurirg to the benefit of the consumer,
he stated that the very day Car
negie's new Pittsburg road announced
it's low rates all other roads between
Lake Erie and the furnaces had to do
exactly as we'll.
r. A Bates didn't think the mine
owner on the Mesaba could live unless
exceptionally favored by the quality
of his mine. He figured that the Fayal
ore costs Is cents more than it sells
for, the company making on it's rail
haul what it loses in mining, and sell
ing at such a price that the miner,
being obliged to pay rail freights,
would mine at an actual loss unless OPP
Grating the best and cheapest mines
He stated that ores were selling above
a year ago, instancing the 15-cent pool
advance. He admitted the great con-
tention that Carnegie's cost sets the
pace for all mines. He stated that
nobody would buy mines, but was
forced to admit that a good many had
been bought of late by business men
who had no railroads.
Mr. COrrigan was turned over a grid
iron for an hour, but the testimony
was largely of a personal nature as to
relations between himself and the
Rockefeller interests. He testified that
other lines were shipping ores to Esca-
naba, eighty and siXty-f1ve miles, at
% and 20 cents, respectively below
Minnesota rates. The remainder of his
testimony was on the lines given above
The commission adjourned late in the
afternoon, to meet in Chicago Friday
morning.
Portland, Me-, and return, $24.50 by the 500
Line.