The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-08-03
Road Fast Growing Factor in Iron
Business, Says Thomas F.
Woodlock.
Wall Street Journal Editor Takes
Look at J. J. Hills Iron
Mountains.
Sees Annual Profit Five Years
Hence Almost Equal to
G. N. Dividend.


high compliments by Thomas r. WOOD
lock, editor of the Wall Street Journal,
who has been inspecting the Mesaba range
and transporting facilities from, the mines
and at the head Of the lakes. Taking Mr..
Hills own estimates, which do not seem
at all out of the way in the light OF what |
Is being done to-day, Mr.. Woodlock looks |
to see the Great Northern a much more |
important factor in the iron business OF |
the country very soon, and at the same |
time adding immensely to the revenues OF |
the system thru range trafhc. On ~
600, 900 tons Of ore handled annually by the |
end of another five years-Mr Hills es-
timate-at present protts tine Great
Northern would get from the ore trafhc |
and business alone an income OF S1,0o0,-
900 or nearly per cent on Great North !
ern stock Mr.. Woodlock sums up the !
situation-cost Of mining, transportation,
profits and outlook-thus:
Cost OF Mining.
"The cost Of mining and putting it
on the cars. therefore, varies from cents |
a ton to as much as IS cents, or even |
more, according to the development work |
necessary on the mine, and the oppor-
tunity for economical handling. This gov.
ems the royalty paid by lessees. Most OF
the lands are held on lease by those who |
operate them, and many leases are state |
leases The plan usually provides tnat |
the lessee shall mine minimum quaint
ty Of ore aech year and pay so much per !
ton. Leases made some time ago PROVIDE |
FOR royalties Of about 121s cents per ton.
but later leases make royalties u pto 80
cents per ton and even more accordns
TO location and cost Of mining. The state
leases are usually at 25 cents per ton'
with a minimum Of $4,000 tons per Az
acre tract, while other leases at varying
royalties usually make the MINIMUM loo'-
900 tons per 40 acres. .-. ~. ......
1.-THE distance to the Great Northern
docks at the lake is about 116 miles by rail-
Mr.. Hill has Contrived to find location
to give a maximum grade or four-tenths
of per cent (about % feet to the mlle)
each way, and consequently extreme econ
omy Is possible In the handling OF ore by
train AS matter of fact the Great
Northern takes the ore in average train
loads Of 81 900 tonS-about AZ loaded steel
cars of 100000 pounds capactty-from the
mines to the lake, receiving for the service
a rate of so cents per ton. The trains
make the round trip in Fl hours on an av-
erage. The method Of sorting, handling
and weighing at the dock Is Hextraordinar-
lily efficient. AS the ore varies somewhat
in quality at different mines, the cars are
marked accordingly before they are moved
from the mines, and on arrival at the
yards near the docks are sorted out for
D. unloading. The company has three ore
docks at West Superior with a total ca
pacity of 100, 900 tons. The principal dock
Is 2,1O0 feet long, excluding the ap-
proaches and contains $50 pockets, each
with a capacity Of 270 tons. Ore of a GER
tain quality Is always loaded into the same
pocket, this necessitating the sorting pro-
cess in the yard. When the train OF cars
has been sorted it moves slowly on to the
dock passing over a track scales on the
way which accurately weighs each car.
noting its number. These records are the
basis upon which royalties and freights
are paid and upon which the consignee
pays for the ore. AS the train stops each
car Is over a pocket; the hoppers are
opened and the ore dumped into the
pocket. The train then moves off, making
way for another, and returns with its emp
ties to the mine.
Some Big Profits.
1.-THE ore steamers come alongside the
dock and the ore is poured directly into
the matches from the pockets. A 5,OOO-ton
boat can be loaded In less than two hours,
and the average time spent at the dock
by steamers Is less than hours. The
boats make a round trip in about ten days
from Cleveland. The size Of lake steamers
has greatly increased of late years. Ir
1888 Mr.. Hill built some steamers OF S,OOC
tons each and was very greatly rid1culeo
for so doing. Now 6,000-ton boats are fair
Nv common, and some 10,000ton boats
have been ordered by the Steel company
The business Is practically all one-Way
business as the only return load Of con-
sequence is coal, about 100000 tons com
ing west again about Is. 100000 tons Of ore
from the ranges east. Mr.. Hill went out OF
the lake business so far as freight is con-
cerned year ago, selling the Great North
ern steamers at a good price. His raj
TRANSFORMATION, however, must yield
very handsome profit at the S0-cent rate
This is equal to something like $7.25 pc
train mile and 1t is safe to say that hi
cost including stock handling, ETC.. canno
r. Il, thnr trail 10 il q
much There Is certainly SIS per train mil
profit, or say SIS cents per ton of or
handled. Adding to this the royalties OF
ore owned in fee, probably 70 cents pc
ton would be a most conservative estimat
Of the profit On 1000. 900 tons therefore
which Mr.. Hill expects to reach in fiv
years time, there will be profit of $1,000,
600 annually, being nearly per cent o.
Great Northern stock, and representing al
initial cost to Great Northern Of perhap
$4,000, 900 or Sc, 600, $1,000.
Road Owns Enormous Ore Deposits.
1.-THE position Of Great Northern in tn
iron ore field Is thus one ofNgreat interes
and Importance. AS an owner of enorm
Gus bodies Of iron ore it must be reck
oned with by the United States Stee
company sooner or later The full re
sources of Great Northern have not We
been disclosed or proved so far as iron or
is concerned. There are large tracts O
lana owned ny lIS CoMpduy WHICH nav
not yet been thoroly explored, but whic
are known to contain ore. I do not knoy
to what extent negotiations have hithert
been carried on by the company with Nj
Hill. There does not seem to be an
trade on at present. Mr.. Hill, as he him
self says, is a transportation man, but b
is not likely to permit so valuable an as
set to lie dormant, or pass from Grea
Northern on unfavorable terms 1t
clear that the Great Northern stockhol6
ers have in the Mesaba range an asst
of extraordinary value for future es
ploitation Agents Of the Great Norther
company, moreover are constantly on tt
watch for more tonnage, and are cor
stantly securing 1t, by all manner
trades. Some of these are ingenious
the extreme. Despite a falling off In tt
total shipments from the ranges last yes
Great Northern gained IA per cent In i
own shipments.
Genius of Mr.. Hill.
Nothing better illustrates the extra
of md ic ms