The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-05-19

ding OF ship construction In recent |
years lend credence to this view, as |
also do freight market conditions. OF |
late many lake steel ships have been |
built under bond Issue. The owner
would pay, say so per cent of the
cost and issue bonds for the balance.
which bonds would be floated by the
shipbuilding company. These bonds
are usually divided into ten annual
payments, beginning with the ships
first season, and it is necessary for
the vessel to operate In order to pay
interest on the outstanding indebted
ness. Very few ships constructed un-
der this plan have had time to pay
off their bond issue, tho many have
on hand surplus sufficient to redeem
the debt of 1904.
Most shipowners, operating vessels
for profit. are not anxious for a long
season this year. There are too many
ships for the business in sight. There
are more vessels afioat than last year.
millions of tons more than in 1902, yet
the business of 1902 in iron ore, for
| example, was not far from twice the
expectations of 1904. And iron ore
forms three-fourths Of the traffic Of
the upper lakes. The vessel owners
realize that season of four or Ave
months, if it can carry all business
orerlng, will net profit, when the
same business distributed over seven
or eight months would mean an act
ual loss So they welcomed a cold
winter and lots of ice, and when that
failed they hailed difference with
| the masters as affordng an assurance
or shorter and merrier season. The
lake fleet will be able to handle all
business offered If it gets to work by
| June 18th. But such vessel owner
as the United States Steel corpora
ton Is not anxious for short season,
for 1t carries ore for it's own consump-
ton and wants rather low rate; but
1t belongs to the Lake Carriers asso-
citation, and that makes a complica-
ton. But the Steel corporation has
100000 tons Of iron ore heaped up
at lower lake docks, chiefly along
Lake Erie, and will require no more
ore this year than it's own ships can
carry, which again modifies it's de-
sires as to greights.
Danger of Coal Famine.
The northwest Is bare of fuel, as is
usual at this season. II coal does not
commence to arrive within month
it may be uncomfortably bare next
winter. There were received into
Lake Superior ports in 1903, 1,149, 900
tons Of anthracite and 5,788,0OO tons
of bituminous fuel. This is 1000, 900
tons better than the previous year and
far above any preceding season. But
1t has all been consumed.
The lumber fleet will bring up coal,
but that will complicate the lumber
situation. Some lumber ships are now
getting into coal and ore, fact which
agitates the sawmill proprietors,
whose docks are crowded with boards.
They must ship and cannot if the fleet
is depleted by ore and coal.
There are 100000 bushels of grain
afloat in Duluth harbor, but it can
not be gotten to eastern points, where
1T has been sold for May delivery. 9th
err millions Of bushels are in ware
houses, for there are no ships to load
it. Eastern mills which depend upon
Duluth wheat deliveries in the spring
and had bought here in the winter
have been forced to take grain
shipped all-rail, at far higher rate
of freight.
Lake Superior copper producers are
shipping at the rate of more thar
half million pounds Of copper a day
all rail, at an increased cost for every
pound, because they cannot get water
transportation and cannot wait for it
There are not so many barrels OF
flour at all upper lake ports, on both
Lakes Superior and Michigan, as are
usually in store at Duluth alone a,
this time, because this deadlock does
not permit it's shipment east It is
going, if at all, only by all-rail, at q
higher cost to miller and consumer.