The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1899-12-01
IRON ORE PRICES
Rates Fixed for Next Season
More Than Double Those
Of Last.
10 the Cost Must Also Be Added
Increased Freight and
Coke Prices.
Southern Producers Will Greatly
Profit by the New Order
of Things.

NEW YORK. Dec. /. - Discussing
trade conditions the Iron Age says:
The event Of the week has been the
announcement ON the part Of the miners
OF Lake Bessemer ores of their prices
for the season of 190O-Ol. The figures
decided upon, $3.50 at lower lake
ports for the Norrie grade, compared
with 1888 last year, represents an ad-
vance rather larger than was expected.
This is equal to about 81 cents per unit,
against shade under AS cents last
year. thus representing an advance in
the cost of Bessemer pig iron of about
6.25 per ton for ore alone. To this must
be added the increased cost of coke, at
least 81 per ton, of iron, of labor, and
of rail freights on raw materials, from
receiving ports aud from coke ovens.
Thus the coke freights have been just
advanced Ii cents per ton and rise in
rail ore freights is also imminent.
This will Of course mean that costs
will be considerably higher. although
the full effect will not be felt until the
new ore begins to appear in the mix
lures. 1t is figured roughly that the
cost OF making Bessemer pig in the val
leys will next year not be less than $l4
to $l5 for those vino must purchase all
their raw materials in the open market.
Of general interest is the announce.
ment that non-Bessemer ores are selling
on the basis of $4.25. lower lake ports.
or say. s cents per unit. To makers of
basic and foundry grades this means an
advance very close to that OF producers of
Bessemer pig and fixes a corresponding
minimum for the second half of 1900
and the first half of 1901. These prices
for lake ores open excellent opportuni'
ties for active mining for the deposit:
east of the Allegheny mountains, anu
it seems probable that, for instance
Lake Champlain ores will go in very
considerable quantities into the Pitts
burg and Cleveland districts.
Foreign ores, it would seem, will alst
have much better opportunities. Thu:
we learn that Billing q Crane Of Phil
adelphia have during the past weel
sold for spring delivery between la. 90,
and 200. 900 tons of New Foundland or,
to nine different concerns in the East
ern Pennsylvania districts at "a cent
per unit t. o. b. Philadelphia.
To the makers of pig iron in Virginia
Tennessee, Georgia and Alabama, th
establishment of prices for lake ore an,
coke holds out the promise Of year o
good profits. because the majority o
them control their own supplies. In th
past they have suffered in competition
with the Central West from the fac
that prices of lake ores We're down to
low level, and all other costs were on
starvation basis. To them, relatiyel
. much larger margin is opened. sine
the effect to them Is only the increase
cost of labor and the advance in rate
of freight on product to market.
The Lake Superior ore mining inter
ests did not this year in the least shar
in the prosperity of the iron trade
They have determined to participate i
the profits of the season Of 10000, an
are sure to succeed.
The blowing-out of furnace is e,
pected to bring large interest in tn
Central West into the Bessemer pl
iron market.
In steel, the only feature OF intere:
is the appearance of number OF lars
| INQUIRIES in the Eastern markets.