The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-02-15
TO GET AT THE MINES
EDUCATORS OF THE STATE BE-
COME INTERESTED IN THE
MIsSABE MONOPOLY
7 z IEf.f1
A MEETING TO DISCUSS 1T

Their Action Being Based on a
Report to the independent Mine
Owners--Attackin the Problem
From Another Standpoint-Where
Educational Interests Come In.
A number of the prominent educators
of the state have calledra meeting to
be held in st. Paul on Feb. q, and
an invitation has been extended to all
county superintendent. superinten-
dents of independent districts and
members of school boards to be pres
ent The meeting is not called by the
educators in their official capacities,
but as citizens of Minnesota.
The call is signed by the following
gentlemen: r. E. Denfeld. superinten-
dent of the Duluth schools; William
H. Salter, president of the board of
education of Duluth; Il. w. Wheeler,
county superintendent Of st. Louis
county; A. J. Smith, superintendent of
ST. Paul schools; William F. Phelps.
member of normal school board;
Charles NJ Jordan, superintendent Of
Minneapolis schools. and j. 5. Pills.
bury, president of the board Of regents
of the state university.
The call for the meeting is based on
the following report:
To the independent lease and fee
owners Of iron lands on the Missabe
range:
Your committee to whom was referred the
work of reporting the reasons or causes
which now and for some years nave prevent
ed independent mine owners on the MeSaba
range from mining and shipping ore, beg
leave to report as follows
There is fairly proven to exist on the Me
saba range 4OO,00000O tons of ore. OF this
oroount ba Stata Of Minnesota owns about
100 0OO 900 TONS The Lake Superior Consoli-
dated Iron Mining company, the Federal steel
company and the Oliver Iron Mining company
own about 150000,000 tons. eve believe the
Oliver Iron Mining company, which is really
an Oliver Carnegie combination, and IN some
ways connected with the other two companies,
either gets a low freight rate, shares in
the profit of the rail haul or receives re-
bate on rail haul or vessel carriage IN lower
lake ports) Private parties and private COM
panies own the balance OF the ore, but the
large companies hold leases ION all the state
mines except two, and on many of the mines
owned by private companies and individuals
so that these companies own 1.-The fee or con-
troll by leases fully three-fourths of the entire
ore Of the range. The Lake Superior Con-
solidated Iron Mines company and the Federal
Steel company each own and operate rail-
road to the range and large fleet OF lake
vessels, and the two roads haul all the output
except about 100000 tons per year hauled by
the Great Northern railroad. But all the rail-
roads charge 80 cents per ton freight from
the mines to their docks on Lake Superior.
These two companies own the fee or con-
troll by leases and now
OPERATE ALL THE MINES
on the Vermillion range, and also large
majority of the mines on the South Shore
ranges in Michigan and Wisconsin, and con-
sumo nearly all the ore they produce, and
they have for several years arbitrarily fixed
the sale value Of Mesaba ore by making the
prices low on the small amount they sell in
fha m prevented H.
dependent mining, except in cases where the
Independent miner had an exceptionally high
grade ore all other mines are efectuallY
closed, and must continue to be as long as
existing conditions continue.
These companies are making no profit IN
mining their ore, but they make from 10 to
so cents per ton on every ton they haul. (Ses
gross and net earnings, also operating ex-
penses of the two companies Tor lS96-lSSl and
1898 attached.)
ROYALTIES and freight rates on the South
Shore ra1 ges have been forced down as low
as pessiSle and the price of ore those
ranges not be further reduced without
closing their mines, and putting the entire
demand on the Minnesota ranges. The state
Of Minnesota received from it's iron ore leases
in 1897, $3177 in 1898, s4.975 In 1896 but one
mine worked they now pay the state 500 per
THE CONCLUSIONS.
From the foregoing we conclude: That 40
cents per ton would pay the railroads a
larger prOnC eacn year tnana any Otner rail-
road in the state earns, and that permitting
them to charge eighty cents has operated and
Is operating to prevent alle'independent min
ing and to practically stop all income to the
state and private owners from mines owned
by them. and that 1t Is the plain purpose
of the two railroad companies in pursuing
the present policy to force state royalties to
ten cents per ton or less and to compel
private owners to sell to the two companies
their miro for nominal prices. We are Of the
opinion that continuance Of the present
freight rates on iron ore for another year
will place the ownership Of practically all The
mines on the Mesaba range. now owned by
private PARTIES, in one or the other of the
companies or secure to the companies leases
on them at ten cents or less per ton, and the
result will be that no state ore will be mined
for twenty-five or thirty years, or not until
the other 300,000,0 900 tons have been mined
Unless the state will reduce its royalty to
ten cents per tor (Which counting time and
interest on the me ney, it will be forced to
do) and thus will be lost to the state school
fund not less than SIS, 100000. Your com
mittee, therefore, recommend that you take
the necessary steps to arouse the educational
interests of the state in the matter and with
their aid we believe the great wrong against
the state and so many of it's citizens can be
rlghted. respectfully submitted
I. T. Hale
Alfred Merritt.