The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1899-12-22
Mines Lost Money.

output or iron ore which was ever
sent down from the Lake Superior
district. the mine owner and operator
has not had corresponding profit.
and the majority of them have quit
with loss on their business.
The trouble was that the mine
owners did not grasp the extent of
the boom which was on in the iron
industry. They looked for some
what larger demand. but for nothing
like the demand which developed,
and they thought the market would
not be strong enough to stand any
stiff advance in the price. When the
producers of Bessemer ores got to-
gether last winter before making
their contracts they determined upon
an advance of Is cents ton, knowing
at the same time that there would be
an advance in freight rates, but figur-
ing that it would take up only a part
OF the advance in the price of ore. and
that labor would remain at about the
same price as the previous year.
Their calculations were not far off
so far as transportation was concerned
but were wide of the mark on labor.
1t is true that the season of naviga-
tion just closed has seen the high
est freight rates which have been paid
in recent years, but it was for wild
tonnage. while the majority of the ore
was carried to the furnaces on the
lower lakes in contract boats. While
the owners of wild tonnage were get
ting from 81 to $3.50 on every ton their
boats took down, the owners of the
contract boats, by far the greater part
were carrying it for 60 cents ton, an
advance of 10 cents over the contract
rate for the. season of 1898.
Early in the spring, but still some
time after most of the mine owners
had taken contracts for their entire
seasons output. the magnitude of the
iron boom became apparent, and the
miners were not slow in taking ad-
vantage of the conditions to better
themselves Some 1900 or 1900 men
employed in the mines of the Mar
quette range struck, and that too
after certain classes of them had been
given voluntary advance. They
gained what they struck for. This
victory was followed by corresponding
voluntary advances on the other
ranges, as the demand for miners was
so keen in both the iron and copper
districts that man had no fear of
being long out of a job. and the COM
| panies were obliged to make conces-
sions to hold their men. With these
conditions the men practically made
terms with the mine operators and
set their wages at point which more
than took up the advance in the price
of ore.
The mines Of this region are prac-
tically all In the hands of strong COM
panies and they have filled their con-
tracts. but, with few exceptions,
they. have pocketed a loss on every
ton they have sent out, and are worse
off than they were at the end of the
season of 1898. The iron ore business
was dull that year and the shipments
were fully 100000 tons under what
they are this year, but wages and gen.
eral operating expenses were enough
lower so that even with the lower
price for ore the business was made to
show small profit. This year they
are not only direct losers on their
business, but have besides an indirect
loss through the fact that the enor-
nous quantities of ore they took out
of their mines can never be replaced.
Their life is shortened just tnat much.
The owners Of few small mines
did not contract their ore. and they
made big money on the seasons BUSH
ness, for while the contract mines
were selling their product at an ad-
vance of Is cents over the previous
years price those which were not
under contract readily sold their ore
at an advance of so cents. But there
were few of this sort, and their gains
will not suffice to make up for the
losses which will have to be pocketed
by the unlucky owners of mines which
were contracted. A loss of $1,000, 600
and maybe more will have to be div
ided among the mines of the district.
to say nothing of the indirect loss by
the mining and shipping of'ore which
might. if kept another season, be sold
at big profit.
The majority of the vesselmen too
did not make the money which was
indicated by the quoted freight rates.
As stated before, most of them were
under contract for the season, and in
many of the contracts clause was
inserted which deprived the boats of
the right to carry coal or other cargos
on the return trips, and compelled
them to come up light in order that
no time might be lost in loading and