Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-07

Several Of the largest Independent iron
companies are getting their main supplies
of raw material from Lake Superior mines
under old leases from John D. Rockefeller
and others, which leases are expiring year
by year. In a very few years the last of
them will run out, and most of the big
steel trusts rivals and competitors will be
at the mercy of the corporation for iron.
The estimates of the quantity of ore now
owned and controlled by the corporation
range from 110O,000,OOO tons to 1900. 600, 900
tons. 1t must be borne in mind, however,
that In making estimates the experts of
the corpora ton have never done any guess
ing or calculating on what there might be
below the levels actually worked. In the
Lake Superior country, where the bulk of
the ore lies. bottom has never been reached
them are down 800 feet Deposits are as
rich at the depths as nearer the surface
The wisest and most experienced Of the
steel trusts insiders feel certain that
the actual ore owned and controlled ex-
ceeds 1000 100000 tons.
*
The next largest holding is that of the
Tennessee Coal and Iron Company, which
in the Alabama field alone has a deposit of
over 100000 tons. This is larger than
any published or official figure, but is relia-
BILE and is based on extensive and thorough
diamond drill borings under direction of
Don H. Bacon when he was president of
the company-experiments covering a period
of three years. 1t was knowledge of the
value of this single asset that inspired John
w. Gates and his friends to buy all the
stock of the company they could Jay hands
on In addition to the fabulously rich ore
deposits, T. c. and /. has within ten or If
teen miles of the mouths of the mines vast
beds of coal amounting to almost as much
ton for ton as the iron. On the map of the
whole world there is probably not such an
other instance Of iron and fuei for its man.
ufacture found in as close association and
in such quantity or such proximity to mar
ket. If they had imagined for a minute
that outsiders had an inkling of what their
Mr.. Bacon had learned for them. the Han
over Bank crowd would not have left the
property out over night for Col. Gates and
his iron and steel experts to grab. The 30
per cent Of the stock now owned outright
by the Gates syndicate IS said to stand
them less than par. On present income it
may not be worth above that price; on
known asset value 1t is the most attractive
thing on the list. The old owners would
probably jump at a chance to get back the
stock at 200 or better.
X i
1t may surprise many to be informed that
in spite Of all the talk of plunging over
speculation this fall the loans Of the New
York banks are less by about SIS, 900. 600
than they were a year ago. Incidentally.
also, national bank circulation has in
creased 1920, 900, 600 In the last six years, or
nearly 1875 per cent. The number of ma
tional banks has increased 2,572 during the
same period, of which fully one-half are To-
Gated in the middle west and south.
With the announced change in the owner
ship of Wisconsin Central there passes from
the stage the last reminder Of the old
Rockefeller regime. Wisconsin Central was
the first railroad John D. Rockefeller went
into on an extensive scale, and the expe-
rience was a costly one although he even
tually realized indirectly an enormous profit
on the investment, for it was on Wisconsin
Centrars account that he became interested
in the Superior ore lands which he after
ward sold to the steel trust for $135, 600. 600.
He was drawn into the Wisconsin railroad
through the urgency of a party of his
Cleveland friends of the Baptist persuasion.
headed by a couple of brothers by the name
of Crosby, who in turn interested the